Suggest co-founder equity split from idea, time, capital, and lead role. Startup-specific. Use as a starting point and document with vesting.
Equity Split Calculator for Co-Founders
Suggest co-founder equity split from idea, time, capital, and lead role. Startup-specific. Use as a starting point and document with vesting.
Contribution inputs
For each co-founder: idea, time/commitment, capital (0–100 each). Optionally mark lead role for a small multiplier.
Understanding the Inputs
Key components required for the co-founder equity split calculation
Idea, Time, Capital
Relative contribution (0–100) for idea/vision, time/commitment, and capital. Higher numbers mean greater relative contribution. They need not sum to 100 across co-founders; we use relative weights and normalize to 100%.
Idea / vision (0–100): origin of idea, product direction
Time / commitment (0–100): full-time vs part-time, effort
Capital (0–100): cash invested, forgone salary
Scores are summed per founder; lead multiplier applied if checked
Lead role
If one co-founder has a clear lead role (e.g. CEO), check Lead role. We apply a small multiplier (e.g. 1.15x) to their score so their suggested equity is slightly higher. Use only if the team agrees.
Optional; apply to at most one founder
Reflects greater accountability and visibility
Formula Used
Score_i = (Idea_i + Time_i + Capital_i) × (1.15 if Lead else 1)
Equity %_i = Score_i ÷ Sum(Score_j) × 100
Scores are relative; we normalize to 100% so suggested equity sums to 100%. Idea, time, and capital are each 0–100 per founder; the lead multiplier (1.15) is applied only if the lead role box is checked.
The Definitive Guide to Co-Founder Equity Split: Idea, Time, Capital, and Lead Role
Suggest co-founder equity split from relative contributions (idea, time, capital) and optional lead role. Startup-specific. Use as a starting point and document with vesting.
A co-founder equity split is the percentage of the company each co-founder owns at founding. This calculator suggests a split based on relative contributions: idea/vision, time/commitment, capital, and an optional lead role (e.g. CEO) multiplier. Getting the split right early reduces conflict and supports a clear cap table for future investors.
Why Contribution-Based Splits
Using idea, time, and capital (and optionally lead role) makes the rationale explicit. It reduces conflict when everyone agrees on how contributions are weighted and encourages documenting the assumptions. Many teams use equal splits when contributions are similar; when one founder carries more of the idea, time, or capital, a weighted split can feel fairer and avoid resentment later.
Lead Role Multiplier
If one co-founder has clearly greater responsibility (e.g. CEO), a small multiplier (e.g. 1.15x) increases their suggested share. Use only if the team agrees; otherwise leave lead unchecked for all. The lead multiplier is not meant to double a founder’s share—it reflects slightly greater accountability and visibility.
When to Set the Split
Ideally agree on the split before or at incorporation, and document it in a founder agreement or cap table. Revisiting the split after months of work often leads to difficult conversations; doing it upfront with a clear methodology (like this calculator) makes the discussion easier.
The Formula and Components
For each co-founder, a score is computed from idea, time, and capital (each 0–100). If the lead role box is checked, that founder’s score is multiplied by 1.15. Equity percentage is then: Score_i ÷ Sum(Score_j) × 100. Scores are relative; they need not sum to 100 across co-founders—we normalize so the suggested equity sums to 100%.
Idea / Vision (0–100)
Represents the relative contribution of the original idea, product vision, or strategic direction. A founder who conceived the idea and defined the product might score higher here; a late-joining co-founder might score lower.
Time / Commitment (0–100)
Reflects relative commitment in terms of time and effort—full-time vs. part-time, or years of expected dedication. Be consistent: if one founder is 100% and another 50%, that can be reflected in the time score.
Capital (0–100)
Reflects relative financial contribution: cash invested, forgone salary, or other capital put into the company. Not all teams weight capital heavily; some treat it as a separate note or loan. Use 0 for all if you are not factoring capital into the split.
Equal vs. Contribution-Based Splits
Equal splits (e.g. 50/50 or 33/33/34) are common when co-founders join at the same time with similar roles and commitment. They are simple and avoid endless debate. When one founder brings the idea, more time, or more capital, a contribution-based split can be fairer. Use this calculator to see what a weighted split looks like; you can always round to a round number (e.g. 55/45) and document the rationale.
Interpreting Results and Vesting
Use the suggested split as a starting point; adjust by agreement. Implement 4-year vesting with 1-year cliff so equity vests over time and early leavers do not keep full unvested shares. Vesting protects the company and aligns long-term incentives—standard in venture-backed startups and recommended even for bootstrapped teams.
Why a One-Year Cliff
The cliff means no equity vests until the co-founder has been with the company for one year. After the cliff, equity typically vests monthly or quarterly over the remaining period. If someone leaves before the cliff, they typically receive no equity for that period, which avoids giving large stakes to short-term participants.
Documentation and Legal
Document the split and rationale in a founder agreement or cap table. Have a lawyer review; this calculator is not legal advice. A clear, written record helps with investor due diligence and reduces the risk of disputes if relationships change later.
Conclusion
Use this calculator to suggest a co-founder equity split from idea, time, capital, and lead role. Document the result and use vesting to align long-term incentives. Pair with a cap table or founder dilution calculator to see how the split changes after funding and option pool allocation.
Next Steps
After you have a suggested split: (1) Discuss and adjust with your co-founders until everyone agrees. (2) Document the split and rationale in a founder agreement or cap table. (3) Implement 4-year vesting with 1-year cliff. (4) Have a lawyer review all equity documents. (5) Use a cap table tool to model dilution from future investors and option pool.
Frequently Asked Questions
Common questions about co-founder equity split
What is a co-founder equity split?
The co-founder equity split is the percentage of the company each co-founder owns at founding. This calculator suggests a split based on relative contributions: idea, time, capital, and optional lead role. Getting it right early reduces conflict and supports a clear cap table for future investors.
How are idea, time, and capital used?
You enter 0–100 for each co-founder for idea/vision, time/commitment, and capital. We sum these into a score per founder (with an optional lead multiplier) and normalize to 100% to get suggested equity. They need not sum to 100 across co-founders; we use relative weights. For example, if one founder scores 150 and another 100, the first gets 60% and the second 40%.
What is the lead role multiplier?
If one co-founder has a clear lead role (e.g. CEO), we apply a small multiplier (e.g. 1.15x) to their score so their suggested equity is slightly higher. Use only if the team agrees. The multiplier reflects greater accountability and visibility, not a doubling of share.
Should equity be equal?
Equal splits are common for 2–3 co-founders when contributions are similar. When one founder carries more idea, time, or capital, a contribution-based split can be fairer. Use this calculator as a starting point and adjust by agreement. You can always round to a round number (e.g. 55/45) and document the rationale.
What is vesting and why use it?
Vesting means equity is earned over time (e.g. 4 years with a 1-year cliff). If a co-founder leaves early, unvested shares typically return to the company. Vesting protects the company and aligns long-term incentives. It is standard in venture-backed startups and recommended even for bootstrapped teams.
How do I document the split?
Document the split and rationale in a founder agreement or cap table. Have a lawyer review. This calculator is not legal advice. A clear written record helps with investor due diligence and reduces the risk of disputes if relationships change later.
What if we disagree on contributions?
Discuss as a team how you weight idea, time, and capital. Adjust the inputs until you get a split everyone can accept, then document the rationale so future disagreements are easier to resolve. Some teams use a facilitator or advisor to run the discussion.
Does the split change after funding?
The co-founder split is diluted when you add investors, option pool, or other shareholders. Use a cap table or founder dilution calculator to see post-round ownership. The relative split between co-founders stays the same unless you issue new founder equity; the percentage of the company each holds goes down as new shares are issued.
How does this differ from an equity cap table?
This tool suggests a co-founder-only split from contributions. A cap table lists all shareholders (founders, option pool, investors) and their ownership. Use both: set the founder split here, then build the full cap table with our Equity Cap Table Generator or similar to model dilution from future rounds.
Why do investors care about co-founder equity split?
Investors care that co-founder equity is clearly agreed and documented. A contribution-based split shows you have thought through fairness; vesting shows you protect the company. Both support a professional cap table and due diligence. Disputes over founder equity can derail a company, so investors look for alignment and clear documentation.
Usage of this Calculator
Practical applications and real-world context
Who Should Use This Calculator?
Co-Founding TeamsTo agree on a fair starting split based on idea, time, capital, and lead role before incorporating or issuing equity.
Startup AdvisorsTo help founders model and discuss contribution-based splits and vesting.
Accelerators & IncubatorsTo give cohorts a structured way to set founder equity and avoid common mistakes before term sheets.
First-Time FoundersTo see how idea, time, and capital translate into a suggested split and why vesting is standard.
Limitations & Accuracy
Subjective inputs: Idea, time, and capital weights are subjective; align as a team on how you score each.
Not legal advice: Document and vest with a lawyer; this tool is for planning only.
Future dilution: The split is diluted by investors and option pool; use a cap table or founder dilution calculator for post-round ownership.
Real-World Examples
Case A: Two co-founders, one lead
A has Idea 60, Time 70, Capital 20, Lead; B has Idea 40, Time 30, Capital 80. A’s score = (60+70+20)×1.15 = 172.5; B’s = 150. Equity A ≈ 53.5%, B ≈ 46.5%. They round to 55/45 and document that A drove product and ops while B brought capital.
Case B: Three co-founders, equal commitment
All three score Idea 33, Time 33, Capital 33, no lead. Scores are equal, so suggested split is 33.3% each. They keep equal split and add 4-year vesting with 1-year cliff so early departures don’t keep full equity.
Summary
The Equity Split Calculator for Co-Founders suggests a co-founder equity split from idea, time, capital, and optional lead role. Use it as a starting point and adjust by agreement.
Document the split and rationale in a founder agreement or cap table, and implement vesting (e.g. 4-year with 1-year cliff) to align long-term incentives and protect the company.
Pair with a cap table or founder dilution calculator to see how the split changes after funding and option pool allocation.
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Suggest co-founder equity split from idea, time, capital, and lead role. Startup-specific. Use as a starting point and document with vesting.
How to use Equity Split Calculator for Co-Founders
Step-by-step guide to using the Equity Split Calculator for Co-Founders:
Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided
Frequently asked questions
How do I use the Equity Split Calculator for Co-Founders?
Simply enter your values in the input fields and the calculator will automatically compute the results. The Equity Split Calculator for Co-Founders is designed to be user-friendly and provide instant calculations.
Is the Equity Split Calculator for Co-Founders free to use?
Yes, the Equity Split Calculator for Co-Founders is completely free to use. No registration or payment is required.
Can I use this calculator on mobile devices?
Yes, the Equity Split Calculator for Co-Founders is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.
Are the results from Equity Split Calculator for Co-Founders accurate?
Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.