Plan an employee option pool and see how it affects founder and investor ownership. The tool estimates required option shares, hiring capacity, and option pool health.
The result shows the financing impact on ownership, valuation, conversion, or dilution. A stronger result protects founder ownership while preserving enough incentive for investors and employees.
This estimate is educational and should not replace legal, tax, or fundraising advice. Real term sheets may include preferences, pro rata rights, participation, vesting, and other provisions.
If 5,000,000 shares exist and the target pool is 15%, the company needs about 882,353 option shares on a fully diluted basis.
Many startups plan option pools based on hiring needs, stage, and investor expectations. Early-stage pools often need enough capacity for key hires.
Use option shares = existing shares × target pool percentage / (100 - target pool percentage) to create a fully diluted target pool.
It depends on the term sheet. A pre-money option pool usually dilutes founders more than new investors.
A common planning range is roughly 10% to 20%, but the right size depends on hiring plan, stage, and compensation strategy.
Divide available option pool shares or percentage by expected grants for hires across executives, managers, and individual contributors.
| Module | What it shows |
|---|---|
| Main Result | Primary startup finance output for this calculator. |
| Ownership Impact | How the scenario changes equity or valuation. |
| Health Score | Practical quality score from the result. |
| Decision Signal | Recommended action based on the result. |