How to Use Equity Gift Calculator
The Equity Gift Calculator delivers fast, transparent calculations with a clear step-by-step output.
- Enter the company valuation, total shares, and your current holding.
- Switch between percent or share-count mode for the gift size.
- Provide cost basis, exemption per recipient, and estimated tax rate.
- View per-recipient share, value, and estimated tax payable.
Formula & Theory — Equity Gift Calculator
Gifting equity is common in startups and family business succession. The Equity Gift Calculator translates valuation and share counts into per-recipient values and estimates gift-tax exposure given the annual exclusion.
Gifted shares = Holder shares × gift% or directly entered shares
Gifted value = Gifted shares × Price per share
Per recipient = Gifted shares / recipients
Taxable = max(0, Gifted value − Exemption × recipients − Cost basis)
Estimated tax = Taxable × Rate| Symbol | Meaning |
|---|---|
| Valuation | Company total value |
| Holder shares | Sender’s pre-gift holding |
| Exemption | Per-recipient annual exclusion |
| Cost basis | Sender’s historical cost |
Use Cases for Equity Gift Calculator
- Founders gifting equity to early employees.
- Family business successions distributing shares to heirs.
- Investors planning charitable equity contributions.
- Accountants estimating Form 709 gift-tax exposure.
- Estate planners modeling multi-year gifting strategies.
- Co-founders restructuring cap tables for new partners.
Whether you are a homeowner, investor, or analyst, the Equity Gift Calculator produces instant results with formulas and explanations you can rely on.