Equity Split Calculator
Calculate fair equity distribution among cofounders based on contribution factors
Factor Weights
Founders (2)
Results
Equity Distribution
Factor Breakdown
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Check IncubatorA Guide to Fair Equity Splits
Dividing equity is one of the most critical conversations co-founders will have. A fair process builds a strong foundation for your partnership, while an unfair split can lead to resentment and demotivation. This calculator is designed to guide an objective discussion based on tangible contributions, helping you reach an agreement that feels right for everyone.
The Core Factors Explained
Time Commitment
This factor accounts for the time each founder dedicates to the startup. A founder working full-time is taking on more risk and has a greater opportunity cost than someone contributing part-time. Be honest about your expected commitments—is this a full-time job, a side hustle, or something in between? The equity should reflect that level of dedication.
Financial Investment
While many startups are bootstrapped, any cash invested by founders is a significant contribution that reduces risk and accelerates growth. This factor gives weight to the capital each person puts into the business. It's a tangible measure of "skin in the game" that deserves to be recognized in the equity split.
Relevant Experience
This values the unique skills, expertise, and network each founder brings. A founder with deep industry knowledge, a track record of building successful companies, or critical technical skills provides immense value beyond just their time. Consider past successes and how relevant that experience is to your startup's mission.
Role Criticality
Not all roles are created equal, especially in the early days. This factor assesses the importance of each founder's primary responsibilities. For a deep-tech startup, the CTO's role might be more critical initially than the CMO's. Discuss which roles are most vital to overcoming your first major hurdles and assign weight accordingly.
Use this tool as a starting point for a conversation, not as a final verdict. The numbers provide a logical framework, but they don't capture everything. Have an open discussion, adjust the weights based on what you collectively agree is most important for your venture, and document your agreement. A fair split is one that every founder feels good about.