Net startup exit proceeds.

Exit proceeds depend on ownership %, exit valuation, liquidation preferences (paid first to investors), and tax. After preferred shareholders take their preferences, remaining 'distributable' pool divided by ownership %. Common shareholders (founders, employees) often receive less than naive math suggests due to liquidation preferences.

10% ownership × 100M exit = 10M naive. But 20M liquidation preferences for investors = 80M distributable. 10% × 80M = 8M gross. After 25% tax: 6M net. The 20M preference reduces your proceeds 20% before tax. Understanding waterfall critical for founders/employees.

Liquidation preference structures: 1x preference (investor gets back original investment first, then participates pro-rata) - most common. 2x preference (gets back 2x investment first) - aggressive, harms founders. Participating vs non-participating: participating means investor gets preference AND pro-rata share. Each variation can change founder proceeds 30-60% on smaller exits.

Run it with sensible defaults

Using ownership of 10%, exit valuation of 100,000,000, liquidation preferences of 20,000,000, tax rate of 25%, the calculation works out to 6,000,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Ownership %, Exit Valuation, Liquidation Preferences, and Tax Rate % — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

Distributable = exit - preferences. Gross = ownership × distributable. Net = gross × (1 - tax). The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Why investors run this

Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.