EmpireCalc

Phase 1 · Core Sovereign Layer

Equity & Liquidity Calculator

That option grant looks life-changing — until dilution and the strike price take their cut. Model your real payout at exit across every funding round between now and the door.

Your inputs

Six levers. Payout re-solves on every tick — no Calculate button.

25000 sh

The number of shares in your grant.

10000000 sh

Every share, option and warrant combined, today.

$1.5

What you pay per share to exercise.

$250000000

Acquisition or IPO valuation of the company.

2 rounds

Raises expected between now and exit.

20%

Typical 15–25% per priced round.

Net payout at exit
—
After dilution and exercise cost.
Final ownership
—
Exit price / share
—
Exercise cost
—
Return on exercise
—

Under the hood

The math, fully exposed

Your share count is fixed; dilution shrinks your percentage round by round. Every figure comes from these formulas:

Current ownership = your shares ÷ fully-diluted shares
Dilution factor = (1 − dilution per round) ^ rounds
Final ownership = current ownership × dilution factor
Gross value = final ownership × exit valuation
Exercise cost = your shares × strike price
Net payout = gross value − exercise cost
  • Dilution compounds: two 20% rounds don't cost you 40% — they cost 1 − (0.8 × 0.8) = 36%, but the order-of-magnitude lesson holds: each round quietly carves off a slice before you ever see liquidity.
  • Strike is a real cost: exercising isn't free. Your gross is only payout if the exit price per share clears your strike — otherwise the options are underwater and worth nothing.
  • Percentage beats share count: a big-sounding share grant means little without the fully-diluted total. The same 25,000 shares is 0.25% of 10M shares but only 0.05% of 50M.

Your directives

What to do next, based on your numbers

Adjust the sliders to generate tailored recommendations.

Answers

Frequently asked questions

What is dilution and how does it affect my stock options?
Each time a company raises a funding round it issues new shares, so the total grows and your fixed grant becomes a smaller percentage of the company. If you own 0.25% and the company runs two rounds that each dilute existing holders by 20%, your stake falls to 0.25% × 0.8 × 0.8 = 0.16%. Your share count never changes — your slice of the pie shrinks.
What does it mean for stock options to be "underwater"?
Options are underwater when the exit price per share is below your strike price — the price you must pay to exercise. In that case exercising would cost more than the shares are worth, so the options are worthless until the share price recovers above the strike.
How is my ownership percentage calculated?
Ownership = your granted shares ÷ the company's fully-diluted share count (all common, preferred, options and warrants combined). Always ask for the fully-diluted number — a percentage quoted against only common stock overstates what you actually own.
Should I exercise my options early?
It depends on strike cost, your conviction in the company, and tax exposure — early exercise of ISOs can trigger the Alternative Minimum Tax (AMT) on the paper gain. This tool sizes the upside, but exercise and tax timing are decisions to make with a qualified advisor, not a calculator.