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How to use % Shares Calculator for equity ownership to employees
How to use % Shares Calculator for equity ownership to employees

Ownership (% vs #)

Yin Wu avatar
Written by Yin Wu
Updated over a week ago

The standard practice is to give equity based on the percentage of fully diluted shares. However, percentages can't be included on offer letters because the number of shares at a company change over time.

Pulley includes an % Shares Calculator to make the conversion between % and number of shares easy.

What's included in the denominator for fully diluted?

Fully diluted includes the entire option pool (assuming it's granted) and all shares (preferred & common). Fully diluted does not include equity given to investors in SAFEs because the SAFEs have not converted. For SAFEs without caps or on a discount, it's impossible to know until the priced round valuation how many total shares will be fully diluted.

Click on % Shares Calculator to try Pulley's calculator.

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