Enter the number of existing and future option issues and the total number of stock outstanding into the Equity Overhang Calculator. The calculator will evaluate the Equity Overhang.

## Equity Overhang Formula

The following two example problems outline the steps and information needed to calculate the Equity Overhang.

EO = EFO / S

Variables:

- EO is the Equity Overhang ( )
- #EFO is the number of existing and future option issues
- #S is the total number of stock outstanding

To calculate the equity overhand, divide the number of existing option issues by the number of stocks outstanding.

## How to Calculate Equity Overhang?

The following steps outline how to calculate the Equity Overhang.

- First, determine the number of existing and future option issues.
- Next, determine the total number of stock outstanding.
- Next, gather the formula from above = EO = #EFO / #S.
- Finally, calculate the Equity Overhang.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

number of existing and future option issues = 50,000

total number of stock outstanding = 100,000

EO = #EFO / #S** **= ?