Employee Equity Pool Calculator: Pool Size as a Share of Post-Money
Work out an employee equity pool as a percentage of post-money valuation — the figure that decides how much equity is available for future hires and how much of that comes out of the founders' stake.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Equity pool size | Founders + investors share |
|---|---|---|
| $1.5M / $15M (10%) | 10.00% | 90.00% |
| $3M / $20M (15% Series A) | 15.00% | 85.00% |
| $500k / $10M (5% small pool) | 5.00% | 95.00% |
| $50M / $250M (20% later stage) | 20.00% | 80.00% |
How This Calculator Works
Enter the equity pool value (or share count reserved) and the post-money valuation (or fully diluted share count). The calculator divides one by the other and multiplies by 100 to give the pool percentage, with the founders + investors share shown alongside.
The Formula
Part as a Percentage of a Whole
Part is the portion, Whole is the total it belongs to
Worked Example
A $1.5M pool on a $15M post-money company is a 10% equity pool, with 90% held by founders and investors. Standard new-pool sizing at Series A: 10% to 15% of post-money to support 12 to 24 months of hiring. Bigger pools dilute founders more aggressively if the pool comes from the pre-money cap table (as most term sheets require).
Key Insight
The hidden cost of the option pool is that most term sheets require it to come from the pre-money cap table — meaning founders absorb the dilution before investors arrive. A 'clean' 20% Series A round at a $20M post-money with a 15% post-money pool actually dilutes founders 30%+ when the pool top-up is included. Read the term sheet carefully and model the pool's effect on founder ownership explicitly — many founders are surprised by the math.
Why pool dilutes founders before each round
Standard fundraising practice. New investors require pool 'top-up' BEFORE their investment closes. This dilutes existing shareholders (founders, prior employees) but not new investors.
Example. Pre-money $40M. Company has 60% founders, 20% existing investors, 20% existing pool. Series B at $20M post-money valuation.
Series B lead requests pool topped to 15% post-money. Pool refresh diluted across existing holders (founders, prior investors, prior pool). Series B investor purchases at $20M valuation with 15% pool already established.
Negotiation point. Pool size and top-up affect founder dilution. Negotiating smaller pool benefits founders short-term but limits ability to hire.
Best practice. Right-size pool to support hires for next 18-24 months. Substantially over-sized pool unnecessarily dilutes founders. Substantially undersized pool creates need for early refresh in subsequent round.
Employee equity grant levels by role
Carta data. Distribution of equity grants by role and stage. Series A startup typical.
(1) CEO (if founder, no additional grant). Non-founder CEO: 4-8%.
(2) VP/SVP — 1-3%.
(3) DIRECTOR — 0.5-1.5%.
(4) MANAGER — 0.2-0.5%.
(5) SENIOR ENGINEER — 0.1-0.5%.
(6) MID ENGINEER — 0.05-0.2%.
(7) JUNIOR — 0.02-0.1%.
Grants smaller at later stages. Series A: senior engineer 0.5%. Series D: senior engineer 0.1%. Lower absolute % but higher absolute value at higher valuations.
Refresh grants. After 4-year vest, employee receives refresh grant. Typically 50-100% of original grant. Maintains motivation and prevents 'cliff fall-off' (employee leaves after fully vested original grant).
Strategic implication. Equity is substantial component of startup compensation. Senior engineer earning $200K cash + 0.5% × $50M valuation = $250K equity over 4 years = $50K/year effective compensation increase. Substantial.
Startup equity pool benchmarks (Index Ventures + Carta)
Reference U.S. startup employee equity pool size by stage.
| Funding stage | Typical pool size | Notes |
|---|---|---|
| Pre-seed/seed | 10-15% | May start smaller |
| Series A | 10-20% | Most common: 15% |
| Series B | 12-20% | Top-up needed |
| Series C | 10-18% | |
| Series D and later | 8-15% | Late-stage smaller |
| Pre-IPO | 8-12% | Tightened pool |
Pool size varies by industry. Tech startups higher (substantial equity component of compensation). Consumer products lower. Biotech variable depending on capital intensity. Always research industry-specific benchmarks when designing equity strategy.
Frequently Asked Questions
How is the equity pool calculated?
Divide pool size by post-money valuation, multiply by 100. A $1.5M pool on a $15M post-money company is 10%.
What is a typical pool size?
Seed: 10% to 15%. Series A: 10% to 20%. Series B and later: 5% to 10% top-ups. Larger pools support more aggressive hiring; smaller pools require more frequent top-ups.
Pre-money vs post-money pool?
Pre-money pools come from the existing cap table (founders bear all dilution). Post-money pools are added after the investment (all shareholders dilute proportionally). Most term sheets require pre-money treatment — which is more dilutive to founders.
How quickly does the pool deplete?
Standard rule of thumb: 60% to 80% of the pool is consumed by hires made in the first 12 to 24 months after the round. The remaining 20% to 40% covers existing-team refresher grants and any unexpected hires.
Can the pool be increased without a new round?
Yes — but it requires board approval and dilutes all existing shareholders equally (no founder-only dilution like at a new round). Pool top-ups between rounds are normal during fast hiring phases.
When is this calculator unreliable?
When calculation includes/excludes different share types inconsistently (preferred shares, warrants, SAFE notes, convertibles all complicate counting). Also unreliable when comparing across stages without normalization. For meaningful analysis, use Carta or similar equity management platform for accurate fully-diluted calculations.
References & Authoritative Sources
- Carta — Equity Research — Startup Equity Distribution Data · consulted June 1, 2026 · Industry equity management platform research
- Y Combinator — Startup Resources — Equity Distribution Guidance · consulted June 1, 2026 · Leading startup accelerator
- Index Ventures — Equity Allocation Handbook · consulted June 1, 2026 · Major venture capital firm equity research
Related Calculators
Methodology & Review
Employee equity pool percentage equals (employee option pool shares / total fully diluted shares) × 100. The calculator returns equity pool size. U.S. early-stage startup standards: 10-20% pool at Series A. Pool replenished at subsequent rounds. Founders' equity diluted as pool grows. Stock options vest over typical 4-year period with 1-year cliff. RELIABILITY: Reliable for documented share counts. Less reliable when (a) calculation includes/excludes different share types (preferred, warrants, convertibles); (b) pool refresh timing creates ambiguity; (c) fully diluted vs current basis differ substantially.
Updated