What is a co-founder equity split calculator?
A co-founder equity split calculator is a tool that recommends a fair percentage of the company for each founder based on weighted contribution factors like role, time commitment, capital invested, idea origin, risk taken, and network. It produces a defensible cap table starting point so founders can negotiate from numbers instead of feelings.
What is the most fair way to split equity between co-founders?
The most fair split is one that reflects each founder's actual contribution and risk. A weighted model that scores role criticality, full-time commitment, capital invested, idea origin, personal risk, and network produces a defensible split. Equal splits work only when contributions are equal across every dimension, which is rare in practice.
Should one founder always get more equity?
Not always, but often yes. The founder who originated the idea, took the biggest pay cut, recruited the team, or works full-time while others moonlight typically deserves more. If contributions are genuinely equal across role, time, capital, risk, and network, an equal split is reasonable - but stress-test that assumption honestly before signing.
How does vesting work for co-founders?
Vesting means each founder earns their equity over time rather than receiving it all on day one. The standard schedule is 4 years with a 1-year cliff: a founder who leaves before 12 months gets nothing, and after the cliff they vest monthly until 4 years are complete. This protects the company if a founder quits early.
What is a co-founder cliff?
A cliff is a minimum time a founder must stay before any equity vests. The standard is a 1-year cliff on a 4-year vesting schedule. If a founder leaves before the cliff, they forfeit all unvested shares. This prevents someone from joining for a few months and walking away with a meaningful stake.
Should the CEO get more equity?
The CEO often gets a small equity premium because they carry fundraising, hiring, and strategic responsibility, but the gap is usually 5 to 15 percentage points rather than double. Title alone doesn't justify a bigger slice; what justifies it is the breadth of role, accountability, and the work that no other co-founder is doing.
Is a 50/50 equity split a bad idea?
A 50/50 split isn't automatically bad, but it carries a deadlock risk: with no tiebreaker, an irreconcilable disagreement can paralyze the company. Many investors prefer to see at least a 51/49 split, plus a clear shareholder agreement defining how disputes are resolved. If you choose 50/50, document the dispute-resolution process upfront.