Founder Equity Split Calculator
Calculate fair equity division between co-founders based on contributions, time, and investment.
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
Founder 1 Equity
59.2%
Founder 2 Equity
40.8%
How to Use This Calculator
- Enter company valuation and each founder's idea/IP contribution score (0–100).
- Enter weekly hours committed and capital invested by each founder.
- Review Founder 1 Equity (%), Founder 2 Equity (%), and their respective dollar values.
- Use the equity difference to open a negotiation conversation grounded in objective data.
How the result changes with Founder 1 Weekly Hours
| Founder 1 Weekly Hours | Founder 1 Equity | Founder 2 Equity |
|---|---|---|
| 10 | 45% | 55% |
| 35 | 55.7% | 44.3% |
| 65 | 61.8% | 38.2% |
| 90 | 64.7% | 35.3% |
What each input means
- Company Valuation
- Current or expected company valuation.
- Founder 1 Idea/IP Score
- Score (0-100) for idea, IP, or domain expertise contribution.
- Founder 1 Weekly Hours
- Weekly hours Founder 1 commits to the business.
- Founder 2 Weekly Hours
- Weekly hours Founder 2 commits to the business.
- Founder 1 Capital Invested
- Capital invested by Founder 1.
- Founder 2 Capital Invested
- Capital invested by Founder 2.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersCompany Valuation = 1000000, Founder 1 Idea/IP Score = 60, Founder 2 Idea/IP Score = 40, Founder 1 Weekly Hours = 50 = 7 input(s) provided
- Calculate Founder 1 EquityFounder 1 Equity59.2 = 59.2
- Calculate Founder 2 EquityFounder 2 Equity40.8 = 40.8
- Calculate Founder 1 ValueFounder 1 Value592222.22 = $592,222.22
- Calculate Founder 2 ValueFounder 2 Value407777.78 = $407,777.78
Engine last updated .
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