Startup & fundraising
Founder Equity Split
Formula reviewed by Tahir Asif, CMA
How ownership is divided among co-founders, typically weighted by idea, commitment, experience, and cash contributed.
A founder equity split allocates company ownership among the people who started it, usually based on some blend of who originated the idea, who is committing full-time, relevant experience each person brings, and any cash each founder has personally invested.
There's no formula that produces a single objectively correct split — any calculation is a starting point for a negotiation between the founders themselves, not a verdict. Splits are also typically subject to vesting, so equity is earned over time rather than granted all at once.
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