PPEXONIX

Salary vs Equity Calculator

Weigh a startup offer: how much salary you give up versus the probability-weighted value of the options offered.

Your numbers

RESULT
Expected equity value
$91.5K
Salary given up
$120K
Expected gain / loss vs market offer
−$28.5K
Payoff if the exit happens
$610K
Break-even exit valuation
$646.15M
On expected value, the market salary pays more — take the offer for the experience or upside, not the average outcome.
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The formula, in plain English

  • Salary given up = (Market salary − Offered salary) × Years
  • Expected equity = Options × (Exit price − Strike) × Probability of exit
  • Exit price = Exit valuation ÷ (Shares today ÷ (1 − Dilution))

Frequently asked questions

What probability of success should I assume?

Be conservative. Most venture-backed startups do not return meaningful value to common shareholders; 10–20% for a large exit is optimistic for an early-stage company.

What should I ask before accepting options?

Total fully-diluted shares, the latest preferred price, the strike price, vesting and cliff, the exercise window after leaving, and the liquidation-preference stack.

Is equity worth it?

Treat options as a lottery ticket with a real but small chance of a large payoff. Accept a salary you can live on regardless.

Results are estimates for planning and education — not financial, legal or tax advice.

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