Employment Contract Review Calculator
Key terms analysis and risk assessment scoring.
Legal Disclaimer
This calculator provides general estimates only and does not constitute legal advice. Laws, regulations, and court procedures vary significantly by jurisdiction. Consult a licensed attorney in your area for advice specific to your situation.
Inputs
Results
Contract protection score (0-100)
40
How to Use This Calculator
- Enter Base Salary, Bonus Target %, and Total Equity Grant value.
- Set Vesting Period in years and indicate whether the contract includes a Severance Clause.
- Enter Severance Weeks Per Year and indicate whether a Non-Compete is included.
- Set Non-Compete Duration in months.
- Review Total Compensation value over the vesting period.
- Flag any non-compete over 12 months or covering a national geographic scope — these face higher legal scrutiny.
How the result changes with Non-compete duration (months)
| Non-compete duration (months) | Contract protection score (0-100) |
|---|---|
| 3.6 | 45 |
| 13 | 30 |
| 23 | 30 |
| 32 | 30 |
What each input means
- Base salary ($)
- Annual base salary offered in the contract.
- Bonus target (%)
- Target annual bonus as percentage of base salary.
- Total equity grant ($)
- Total value of stock/option grants.
- Vesting period (years)
- Number of years for equity to fully vest.
- Has severance clause? (0/1)
- Does the contract include a severance provision?
- Severance weeks per year
- Weeks of severance pay per year of service.
- Has non-compete? (0/1)
- Does the contract include a non-compete agreement?
- Non-compete duration (months)
- Duration of the non-compete restriction.
- Has arbitration clause? (0/1)
- Mandatory arbitration waives your right to sue in court.
- Broad IP assignment? (0/1)
- Does the contract claim IP beyond work-related inventions?
What each result means
- Contract protection score (0-100)
- Higher = more employee-friendly contract terms.
- Total annual compensation ($)
- Base + bonus + annualized equity.
- Risk-adjusted compensation ($)
- Compensation discounted for restrictive contract terms.
- Severance value ($)
- Total severance payout if terminated without cause.
- Non-compete opportunity cost ($)
- Estimated income reduction during non-compete period.
- Negotiation upside ($)
- Potential value from negotiating better terms.
- Annual bonus ($)
- Target bonus amount per year.
- Annual equity value ($)
- Annualized equity grant value.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersBase salary ($) = 75000, Bonus target (%) = 15, Total equity grant ($) = 0, Vesting period (years) = 4 = 10 input(s) provided
- Calculate Contract protection scoreContract protection score = 5040 = 40
- Calculate Total annual compensationTotal annual compensation = baseSalary + annualBonus + annualEquity86250 = $86,250
- Calculate Risk-adjusted compensationRisk-adjusted compensation = totalAnnualComp * (1 - riskDiscount)78487.5 = $78,487.5
Engine last updated .
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