The default tech startup schedule. Nothing vests for the first year. Then 25% lands in a single chunk on the cliff date. Then the remaining 75% drips in over the next 36 months, one small tranche at a time. Here's the timeline in concrete dates and share counts.
"4 years vesting with a 1-year cliff" means your total grant vests over 4 years, but the first 12 months count as a probation period. If you stay through the one-year mark, 25% of your grant vests immediately on that anniversary. After that, the remaining 75% vests in equal monthly tranches (1/48 of the total per month) for the next 36 months.
Some companies use quarterly tranches instead of monthly — same total, larger chunks. Either way, by the fourth anniversary of your grant date, the entire grant is vested.
For a sample 9,600-share grant, monthly post-cliff vesting.
| When | What vests | Shares (this event) | Cumulative vested |
|---|---|---|---|
| Grant date | Nothing — clock starts | 0 | 0 (0%) |
| Months 1–11 | Nothing — inside the cliff | 0 | 0 (0%) |
| Month 12 (cliff) | 25% in one chunk | 2,400 | 2,400 (25%) |
| Months 13–24 | 200 per month × 12 | 200 each | 4,800 (50%) |
| Months 25–36 | 200 per month × 12 | 200 each | 7,200 (75%) |
| Months 37–48 | 200 per month × 12 | 200 each | 9,600 (100%) |
That's 1 cliff event and 36 monthly events — 37 separate vest dates total. Each one moves the slider on your exercisable position. Most people only notice the cliff.
The cliff is a retention tool for the company. It protects against bad hires — if someone leaves in the first three months, the company hasn't given away any equity. It also pushes every new hire to give the role at least a year before deciding it's not working out.
For employees, the cliff is the biggest single event in the entire schedule. The gap between day 364 and day 365 is the gap between zero and 25% of your equity. There is no proration for being almost there.
Not every grant uses 4-year monthly. Schedules drift based on the company's stage, the role, and what was negotiated.
Not every monthly tranche needs a calendar event. Some matter more than others, and clustering reminders saves you from inbox fatigue.
Non-negotiable. The single biggest vest event. Set this with at least 30 days lead time — and don't quit a week before.
Years 2, 3, and 4 mark 25% increments. Good moments to review your total vested position and update any plans around it.
A reminder in late November lets you decide whether to exercise this calendar year or push into next. AMT lives here.
Once you know the cliff date and your monthly cadence, see how to calculate your vested shares as of any date, or read up on what happens if you leave before the cliff. For the full vesting reminder workflow, see stock options vesting reminders.
Set a reminder for your cliff date or next vest event.
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Your grant vests over 4 years total. Nothing vests during the first year. On the one-year anniversary of your grant date (the cliff), 25% vests in a single chunk. The remaining 75% then vests in equal monthly or quarterly slices over the next 3 years.
After the cliff, the remaining 75% vests in 36 equal monthly tranches — 1/48 of the total grant each month. For a 9,600-share grant, that's 200 shares vesting on the same day of the month for 36 months straight, starting the month after the cliff.
Same idea as monthly but in larger chunks every three months. After the one-year cliff vests 25%, the remaining 75% vests in 12 equal quarterly tranches of 6.25% each. Quarterly is more common at larger or later-stage companies.
Mechanically, your equity portal updates to show 25% of your grant as vested. You can now exercise those options at your strike price, subject to any tax due. Nothing happens automatically — you have to actively exercise to convert vested options into shares.
Yes, in tech. The 4-year with 1-year cliff structure has been the de facto standard for Silicon Valley startups for at least 20 years. Outside tech, schedules vary more — some industries use 3-year cliff vesting for retirement plans or 5-year schedules for senior hires.
Sometimes, in specific cases — acquisition with single-trigger acceleration, founder grants with no cliff, sign-on grants for senior hires. But for a standard offer letter, the cliff is binding. If you leave one day before it, you get zero vested.
Because nothing else will. Equity platforms don't email you on vest dates. Your manager won't mention them. Each monthly tranche is a real decision point — whether to exercise, hold, plan for taxes — and without a reminder, 35+ of them pass without you registering the increment.
Free. No account. Set a reminder for your cliff and key vest dates so you have time to plan, not react.
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