Free calculator
Founder exit returns: what you actually take home
Ownership percentage times exit value is not what lands in your account. Preferences come first, the pool dilutes, and tax takes its share. Enter the numbers and see the take-home at three exit scenarios.
| Exit | Investors take | Founders, before tax | Founders, after tax | Founders’ share of exit |
|---|---|---|---|---|
| $10.0M (preference applies) | $6.00M | $3.38M | $2.71M | 33.8% |
| $50.0M | $17.5M | $27.5M | $22.0M | 55.0% |
| $200.0M | $70.0M | $110.0M | $88.0M | 55.0% |
From exit value to take-home
Subtract debt and transaction costs, pay the liquidation preferences or let investors convert if their share is worth more, then split the rest by ownership. Then tax. On a $30M exit with $8M invested at 1x and a 20 percent tax rate, a founder with 30 percent takes home roughly $5.3M, not $9M.
Why the preference multiple matters
At 1x, investors get their money back first and convert above a threshold. At 2x, the threshold moves far to the right and founders are squeezed at every modest exit. This calculator uses non-participating preferences in aggregate; the exit waterfall simulator models each class separately.
The dilution you have not taken yet
Each future round takes 15 to 25 percent. If you are at seed, model the Series A and B dilution before you decide what exit makes sense. Founders who raise too much at high valuations end up needing a huge exit to see anything.
Tax and timing
Capital gains treatment, qualified small business stock in the US, business asset disposal relief in the UK and similar schemes elsewhere change the net by a third. Talk to an advisor before the round, not before the exit.
Questions founders ask
Does it include the option pool?
Yes. The pool is treated as common and takes its share of the common proceeds.
Why three scenarios?
Because the convert decision changes with exit size. A term that is harmless at 5x can cost half your take-home at 1x.
Can I model secondary sales?
Not here. A secondary at the Series A or B is a separate negotiation; this tool models the final exit.
More tools for this stage
Hand-picked for institutional VC and scaling. Free, in your browser, nothing stored.
Checklist
Due Diligence Checklist
What investors ask for before they wire
Open the tool
Simulation
Exit Waterfall Simulator
Who gets what at exit with liquidation preferences?
Open the tool
Game
Term Sheet Game
Accept or reject the investor’s demands?
Open the tool
Checklist
Term Sheet Red-Flag Checker
Which terms should worry you?
Open the tool
Simulation
Valuation Trap Simulator
Does a high valuation now hurt the next round?
Open the tool
Template
Investment Agreement Walkthrough
What a priced-round agreement contains
Open the tool
The calculator shows the math. SeedScope shows the number investors will use.
Founder Starter is free, no card needed: your startup score, a risk assessment and a summary, with your profile visible to investors. Founder Pro, from $39 a month, opens the full valuation with exit odds, returns and a written analysis, refreshed every week, plus the investors matched to you by name.