How to value a startup equity offer
A job offer is more than its base salary, but equity is the part almost nobody explains. This calculator uses the same model recruiters use inside a ClearOffer offer: it multiplies your shares by their value per share at a given company valuation, then adds your cash and benefits over the vesting period to show your total compensation, not just year-one salary.
Stock options vs. RSUs
Stock options give you the right to buy shares at a fixed strike price. They only create value if the share price rises above that strike, so the more the company grows, the more that spread is worth. RSUs are shares granted outright: when they vest they're worth the full share price, with no strike to subtract, but they're usually taxed as income at vesting. Toggle between the two above to see the difference for your grant.
A worked example
Say you're granted 25,000 options at a $2.00 strike, and the current preferred price (what investors pay per share) is $4.00. Today that spread is worth $2.00 × 25,000 = $50,000. If the company grows 5×, the share price becomes $20.00, the spread is $18.00, and your options are worth $450,000. If the company doesn't grow, the options are worth far less, which is exactly why you should model a range of outcomes, including a down case.
Why total comp beats base salary
Candidates routinely undervalue offers because a PDF anchors them on base salary and buries the bonus, one-time cash, benefits, and equity. Seeing the full picture — cash, benefits, and equity across realistic scenarios — is how you compare two offers fairly, and it's often what tips a candidate toward yes. That clarity is what ClearOffer gives every candidate automatically.
Frequently asked questions
How do you calculate the value of a startup equity offer?
Multiply your number of shares or options by the value per share at a given company valuation. For stock options, value per share equals the future share price minus your strike price. For RSUs, it equals the future share price (no strike). Then add your cash compensation (base salary plus bonuses over the vesting period) to see total compensation.
What is the difference between stock options and RSUs?
Stock options give you the right to buy shares at a fixed strike price, so they only have value if the share price rises above that strike. RSUs are shares granted outright and are worth the full share price when they vest, but are typically taxed as income at vesting.
How much is 1% equity in a startup worth?
1% equity is worth 1% of the company's value at the time you sell. At a $50M valuation that is $500,000 before dilution and taxes; at a $500M valuation it is $5,000,000. Because valuations change dramatically and future funding rounds dilute your stake, model a range of outcomes rather than a single number.
Is a job offer with equity better than a higher salary?
It depends on your risk tolerance and the company's trajectory. Equity is higher-risk, higher-upside and illiquid until an exit; salary is guaranteed cash. Value the equity across several growth scenarios (including zero) and compare the total compensation range against competing cash offers before deciding.
This calculator is an educational estimate and not financial or tax advice. Actual outcomes depend on dilution, tax treatment, liquidity, and company performance.