Tools

Equity Visualizer

Model your vesting schedule and explore departure scenarios.

How equity vesting works

When founders or early employees receive equity in a company, they don't own it all immediately. Instead, they earn it gradually over time. This is called vesting. Vesting protects everyone: if someone leaves early, they only walk away with what they've actually earned.

Most vesting schedules work like this:

  • The cliff: a minimum period (usually one year) you must stay before you earn any equity at all. Leave before the cliff and you get nothing.
  • The vesting period: the total time it takes to earn all your equity, typically four years.
  • Example: a standard four-year schedule with a one-year cliff means you earn 25% of your equity after year one, then the remaining 75% gradually month by month over the next three years.

Use the visualizer below to model your own schedule and see how different scenarios play out.

Your Setup

% of company
$

Adds estimated $ value column to the table.

Vesting Timeline

Cliff
No equity vests until 1-year cliff
Year 1
6.3%
Year 2
12.5%
Year 3
18.8%
Year 4
25%
Full
Vested equity
Unvested (forfeited if you leave)

Breakdown

Year% Vested% Remaining
Year 16.3%18.8%
Year 212.5%12.5%
Year 318.8%6.3%
Year 4Fully vested25%0%

Summary

  • Before 1 year: No equity vests. Leaving during this period means you keep nothing.
  • After 1 year: You own 6.3% of the company.
  • After 2 years: You own 12.5% of the company.
  • After 3 years: You own 18.8% of the company.
  • After 4 years: You own 25% of the company. You are fully vested.

Departure Scenario

If you leave after
12.5%of the company is yours to keep
50% of your allocation vested50% forfeited

You keep 12.5% of the company (50% of your 25% allocation). The remaining 12.5% reverts to the company's option pool.

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