Funding & cap table

Employee share option value calculator

An option grant is only worth the gap between exit price and strike price, after dilution and exercise cost. Employees consistently overestimate the first and forget the last two.

Inputs

Result

Net value at exit

USD 87,500

Ownership at grant
0.5%
Ownership after expected dilution
0.38%
Gross proceeds
USD 127,500
Cost to exercise
USD 40,000
Value distributable to ordinary shares
USD 34,000,000
Return on exercise cost
3.19x
  • Liquidation preferences are paid before ordinary shares — always ask what sits ahead of you.

How to use this calculator

  1. 1Enter the number of options granted, the strike price and fully diluted shares.
  2. 2Enter the exit valuation you want to test and expected future dilution.
  3. 3Read gross value, exercise cost and net proceeds.

From option count to real money

Ownership = options / fully diluted shares. Gross value at exit = ownership x exit valuation. Net value subtracts the exercise cost (options x strike) and any liquidation preference paid to investors first.

Future funding rounds dilute the grant. A 1% stake before two more rounds is commonly 0.6-0.7% by exit.

Questions to ask before accepting equity

How many shares are outstanding on a fully diluted basis? What is the current strike price and the last round's price per share? What preferences sit ahead of ordinary shares?

Without the fully diluted count, a number of options means nothing — 50,000 options is 5% of a million-share company and 0.05% of a hundred-million-share one.

Call this tool from the API

Every calculator on this site is also an endpoint. Get a free key from the developer page and call it from your product, spreadsheet or AI agent.

curl -X POST https://utopiavalue.co/api/v1/tools/stock-option-value-calculator \
  -H "Authorization: Bearer $UTOPIA_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{"optionsGranted":50000,"strikePrice":0.8,"fullyDilutedShares":10000000,"exitValuation":40000000,"futureDilutionPercent":25,"liquidationPreference":6000000,"vestedPercent":100,"currency":"USD"}'

Frequently asked questions

What is a liquidation preference?

A right for investors to receive their money back — sometimes a multiple of it — before ordinary shareholders receive anything. It can wipe out option value in a modest exit.

Should I include tax?

Tax treatment varies widely by country and scheme. Treat the net figure here as pre-tax and get local advice before exercising.

What if the exit price is below the strike?

The options are underwater and worth nothing. That is why the strike price and the last round's valuation matter as much as the grant size.