Co-founder Equity Split Calculator

Co-founder Equity Split Calculator — StartupIndiaX
Free Tool

Co-founder Equity Split Calculator

Find a fair equity split based on each co-founder’s contribution, risk, commitment, and role — with vesting schedule recommendations and Indian legal guidance.

2
co-founders

4-year / 1-year cliff

Standard VC-backed model. 25% after year 1, rest monthly. Most common in India.

3-year / 1-year cliff

Faster vest — good for older founders or second-time founders with prior equity.

4-year / 6-month cliff

Shorter cliff for co-founders who've worked together before incorporation.

Milestone-based

Equity unlocks on MVP, revenue, funding milestones. Common for non-tech co-founders.

4-year vesting / 1-year cliff: You own shares on paper from Day 1 but “earn” them over time. If a co-founder leaves before Month 12, they get 0% of unvested shares. After Month 12, 25% vests immediately. Remaining 75% vests monthly over 36 months. The company can buy back unvested shares at par value (₹1–10/share).
Equity & legal guidance for Indian founders
Adjust contribution sliders to see your personalised equity split and analysis.

Never do 50/50 without a tiebreaker

Equal splits create board deadlock. Use 51/49, or appoint an independent director as tiebreaker. Indian Companies Act requires a majority for most resolutions.

Sign a co-founder agreement first

Before MCA incorporation, document equity, IP assignment, roles, non-compete, buyback triggers. Lawyers charge ₹15,000–50,000 for this — worth every rupee.

Credit pre-incorporation work

If you worked 6+ months before incorporating, negotiate early vesting credit. Many Indian founder agreements allow a “pre-vesting” period for pre-incorporation contributions.

Reserve 10–15% ESOP before Series A

Indian Series A investors will insist on an ESOP pool created pre-money, diluting founders. Create it proactively at seed with a formal ESOP policy under Companies Act 2013.

This calculator provides a framework for equity discussions — not legal advice. Equity splits have significant legal and tax implications under the Indian Companies Act 2013 and Income Tax Act. Always consult a CA and startup lawyer before finalising your cap table.

A free tool by StartupIndiaX.com — India’s startup knowledge portal
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'+ ''; grid.appendChild(card); card.querySelectorAll('.factor-slider').forEach(function(sl){sliderFill(sl,c.bg);}); }); } function onSlider(el){ var fi=parseInt(el.dataset.fi), fk=el.dataset.fk, v=parseInt(el.value); founders[fi].s[fk]=v; el.nextElementSibling.textContent=v; sliderFill(el,col(fi).bg); calc(); } function onName(el){ founders[parseInt(el.dataset.fi)].name=el.value; calc(); } function addFounder(){ if(founders.length>=5)return; founders.push({id:nextId++,name:'Co-founder '+founders.length,s:{idea:2,commit:4,domain:3,tech:3,capital:1,risk:3,network:2,ops:3}}); renderFounders(); calc(); } function removeFounder(fi){ if(founders.length<=2)return; founders.splice(fi,1); renderFounders(); calc(); } function selectVesting(el,key){ document.querySelectorAll('.vesting-opt').forEach(function(o){o.classList.remove('sel');}); el.classList.add('sel'); vestingKey=key; document.getElementById('vesting-detail').innerHTML=VESTING_TEXT[key]; calc(); } function renderDonut(sp){ var svg=document.getElementById('donut-svg'); var r=76, cx=95, cy=95, sw=28, circ=2*Math.PI*r; var paths=''; var offset=0, gapFrac=0.008; sp.forEach(function(pct,i){ var c=col(i); var eff=Math.max(pct-gapFrac,0.001); var dash=eff*circ, gap=circ-dash; var off=-(offset*circ); paths+=''; offset+=pct; }); svg.innerHTML=paths; document.getElementById('donut-num').textContent=founders.length; } function renderLegend(sp){ var esop=parseFloat(document.getElementById('inp-esop').value)||10; var shares=parseFloat(document.getElementById('inp-shares').value)||1000000; var valCr=parseFloat(document.getElementById('inp-val').value)||5; var fp=(100-esop)/100; var leg=document.getElementById('equity-legend'); leg.innerHTML=founders.map(function(f,i){ var c=col(i), eff=sp[i]*fp; var sh=Math.round(shares*eff); var rupL=(eff*valCr*100).toFixed(1); return '
'+ '
'+ ''+esc(f.name||'Founder '+(i+1))+''+ '
'+ '
'+fmtPct(eff)+'
'+ '
'+fmtN(sh)+' shares · ₹'+rupL+' L
'+ '
'+ '
'; }).join('')+ '
'+ '
'+ 'ESOP pool'+ '
'+esop.toFixed(1)+'%
'+ '
'+fmtN(shares*esop/100)+' shares
'+ '
'; } function renderRec(sp){ var esop=parseFloat(document.getElementById('inp-esop').value)||10; var fp=(100-esop)/100; var maxGap=0; for(var i=0;i
'+item.lb+'
'+item.v+'
'; }).join(''); } function renderInsight(sp){ var esop=parseFloat(document.getElementById('inp-esop').value)||10; var fp=(100-esop)/100; var names=founders.map(function(f,i){return ''+esc(f.name||'Founder '+(i+1))+' ('+(sp[i]*fp*100).toFixed(1)+'%)';}); var maxGap=0; for(var i=0;i0.25) txt+='There is a large equity gap between founders. Ensure the lower-equity co-founders have strong vesting terms and consider milestone-linked ESOP top-ups to maintain motivation through the critical early years.'; else txt+='This is a differentiated but balanced split reflecting genuine contribution differences. Use a robust vesting schedule to ensure all founders remain committed through the first 4 years.'; document.getElementById('insight-box').innerHTML=txt; } function updateCardPcts(sp){ var esop=parseFloat(document.getElementById('inp-esop').value)||10; var fp=(100-esop)/100; founders.forEach(function(f,i){ var el=document.getElementById('cfpct-'+f.id); if(el) el.textContent=fmtPct(sp[i]*fp); }); } function calc(){ var sp=splits(); renderDonut(sp); renderLegend(sp); updateCardPcts(sp); renderRec(sp); renderInsight(sp); } renderFounders(); calc();