Educational only: Work and pay decision support, not tax, legal, financial or career advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral work and pay planning using your own assumptions.
What this calculator helps you decide
Best for
Separating an uncertain equity grant estimate from guaranteed annual cash pay.
Outputs
Annualised expected value, face value, risk discount and value after cash foregone.
Start here
Enter a grant estimate, vesting years and explicit vesting and realizability assumptions.
- Close-intent boundary
- Do not use this to compare the complete package; use Total Compensation Calculator, and do not treat the result as a company valuation, price forecast or guaranteed amount.
Compare benefits, equity and leave
Equity Compensation Value: annualised expected value
Annualised expected value, face value, risk discount and value after cash foregone.
Grant and risk assumptions
Enter your grant estimate, vesting period and explicit realization assumptions.
Your numbers stay in this browser
Your estimate of the grant face value.
Years across which the grant vests.
Share of the grant you expect to vest.
Share of vested face value you expect to realise.
Cash trade-offOpen the assumptions you are less likely to change on every comparison.
Annual cash compensation given up for the equity package.
Calculated result
Face value, risk discount and cash trade-off remain separate.
Use one currency consistently across all inputs.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Entered scenario18,000.00Baseline
Realizability share: 0.8519,125.001,125.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Annualised expected value
Annual expected value
annualizedExpectedValue = estimatedGrantValue × expectedVestedRate × realizabilityRate ÷ vestingYears18,000.00 currency unitsResult18,000.00 currency units
Grant value adjusted for vesting and realizability, divided by vesting years. Displayed using the engine-rounded value.
Annualised expected value formula →Annualised face value
Annualised face value
annualizedFaceValue = estimatedGrantValue ÷ vestingYears30,000.00 currency unitsResult30,000.00 currency units
Entered grant value divided by vesting years. Displayed using the engine-rounded value.
Annualised face value formula →Annualised risk discount
Annualised risk discount
annualizedRiskDiscount = annualizedFaceValue − annualizedExpectedValue12,000.00 currency unitsResult12,000.00 currency units
Face value minus expected value. Displayed using the engine-rounded value.
Annualised risk discount formula →Value after cash foregone
Value after cash foregone
annualizedValueAfterCashForegone = annualizedExpectedValue − annualCashForegone3,000.00 currency unitsResult3,000.00 currency units
Expected annual value minus entered cash foregone. Displayed using the engine-rounded value.
Value after cash foregone formula →Inputs used
- Estimated grant value
- 120,000.00 currency units
- Vesting years
- 4
- Expected vested share
- 0.75
- Realizability share
- 0.8
- Annual cash foregone
- 15,000.00 currency units
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario values are visible in the URL, calculations run in the browser, and optional saved state stays only on this device. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| estimatedGrantValue | Your estimate of the grant face value. | currency units | 0.01 to 1000000000 | Required | 120000 |
| vestingYears | Years across which the grant vests. | years | 0.25 to 50 | Required | 4 |
| expectedVestedRate | Share of the grant you expect to vest. | decimal rate | 0 to 1 | Required | 0.75 |
| realizabilityRate | Share of vested face value you expect to realise. | decimal rate | 0 to 1 | Required | 0.8 |
| annualCashForegone | Annual cash compensation given up for the equity package. | currency units/year | 0 to 1000000000 | Required | 15000 |
Equity Compensation Value: annualised expected value
Use expected annual value while keeping face value and the risk discount visible.
Formula summary
- Primary formula
- annualizedExpectedValue = estimatedGrantValue × expectedVestedRate × realizabilityRate ÷ vestingYears
Data used here
- The estimate uses your inputs and the work-value formula documented in the methodology.
Decision checks
Act on the result
Compare the result with guaranteed cash compensation and the actual grant terms.
Stress-test the decision
Retest vesting and realizability assumptions rather than relying on one estimate.
When this estimate can be misleading
- Private equity may have no liquid market.
- Future prices and employment duration are uncertain.
- This is not a valuation or tax calculation.
- Use expected annual value while keeping face value and the risk discount visible.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Use these practical guides to interpret the decision and its assumptions.
- How to use the Equity Compensation Value calculator
Annualise grant face value and apply user-entered vesting, realizability and cash trade-offs.
Read guide
Frequently asked questions
What annual value should I assign to this equity grant under my risk assumptions?
Compare the result with guaranteed cash compensation and the actual grant terms.
Which official source and period does this use?
This market-neutral tool does not use an official local policy rule.
Can I share or save a scenario?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
How should I validate the estimate before acting?
Use the estimate as a bounded planning range and replace assumptions with current work and pay records before committing.