The method
How it is worked out
Pool = (hires × average grant + executive grants) × (1 + buffer); pre-money pool = pool ÷ (1 − investor share)
- pre-money pool
- A pool created before the round dilutes only existing holders
Option Pool Calculator
Size the employee option pool from your hiring plan and see who pays for it if it is created before the round. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- VestingUnvested, forfeited options return to the pool.
- Refresh grantsRetention grants for existing staff need room too.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Option Pool Calculator
Size the employee option pool from your actual hiring plan, and see what it costs founders when investors ask for it before the round.
How it works and an example to tryShow less
How to use the result
Hires times average grant plus executive grants, with a buffer, gives the pool as a share of the post-money company. Dividing by one minus the investor share converts it to pre-money terms, and the effective pre-money valuation falls by the pool's value.
Example to try
Twelve hires at 0.4% and 2% for executives with a 20% buffer needs an 8.2% pool. Created pre-money in a £2m raise on £8m, that is 10.2% of today's shares and cuts the effective pre-money to £7.2m.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Founders negotiating a seed or Series A term sheet.
Mistakes worth avoiding
- Accepting the investor's 15% opening number without a hiring plan.
- Forgetting refresh grants for existing staff.
- Not noticing the pool shuffle lowers the real valuation.
Questions
What does the Option Pool Calculator do?
Size the employee option pool from your hiring plan and see who pays for it if it is created before the round.
How should I use the result?
Hires times average grant plus executive grants, with a buffer, gives the pool as a share of the post-money company. Dividing by one minus the investor share converts it to pre-money terms, and the effective pre-money valuation falls by the pool's value.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with an option pool calculator?
Accepting the investor's 15% opening number without a hiring plan. Forgetting refresh grants for existing staff. Not noticing the pool shuffle lowers the real valuation.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.