Free Equity Dilution Calculator

Use this free equity dilution calculator to see what giving a technical co-founder equity could actually cost you. Answer six quick questions and we estimate the dollar value of that equity at your target valuation, then compare it against a traditional dev agency and a flat monthly build with Hurrah.

It is built for founders and small business owners who are weighing whether to trade ownership for engineering. Your results are free, and you can optionally have the full five-year projection emailed to you.

How equity dilution is calculated

Equity dilution is the share of your company you give away when you bring on a co-founder, hire, or investor. The real cost is not the percentage, it is what that percentage is worth as your valuation grows. A 25% technical co-founder stake at a $2M valuation is $500,000 today, and far more if the company succeeds. This calculator multiplies the equity percentage you would offer by your target valuation, then projects that cost across years 1, 3, and 5 so you can see the compounding effect against a fixed annual build cost.

Equity Dilution Calculator FAQ

How do you calculate equity dilution?

Multiply the equity percentage you give away by your company's valuation. For example, a 20% stake at a $1M valuation equals $200,000 in diluted ownership value. As your valuation grows, the dollar value of that same percentage grows with it, which is why the calculator also projects the cost across years 1, 3, and 5.

What is a cap table dilution calculator?

A cap table dilution calculator estimates how much ownership value each person on your capitalization table holds, and how new equity grants reduce everyone's share. This tool focuses on the most common early decision: how much a technical co-founder's equity is really worth, and what it would cost to build the same product without giving up ownership.

How much equity should a technical co-founder get?

Technical co-founders commonly ask for anywhere from 10% to 50%, depending on stage and contribution. Before you agree, it helps to put a dollar figure on it. At a $2M valuation, the difference between 15% and 40% is $500,000. The calculator shows that gap so the equity conversation starts from real numbers.

Is this equity dilution calculator free?

Yes. The calculator and your results are free. You can optionally enter your email to get the full five-year projection and a copy emailed to you.

Is there an alternative to giving away equity?

Yes. Instead of trading ownership for engineering, you can build with Hurrah for a flat $250 to $500 a month, with no equity and no large upfront cost. You keep 100% of your company and get a custom app plus the developer who maintains it. Compare all your options side by side.

Related reading: The Equity Dilution Math Nobody Shows You · Technical Co-Founder: How Much Equity Should You Give Up?