It appears to apply the interest rate monthly. I'd love to have a 5.75% interest every month.
Here's the calculation. It's a little high because we should be getting 1/12th of the 50k per month and compounding, but I'm assuming we got the full 50k up front and got a 5.75% interest compounded per month.
50000*(1.0575 ^ 12)
97799.02314394798212000000
edit: I take it all back. It's super broken. Just mess around with the interest rate and nothing makes any sense. For example, a 0% return still gives you $195,833.33 big co earnings on a 150k salary!
edit 2: The bug is in this function and the one below it: https://github.com/vijedi/equity_calculator/blob/master/js/a...
If your interest rate is zero, the calculated interest is 11 * the monthly difference. Then it's added to your base big company salary, which is clearly wrong. It should be 12 * the monthly difference added to the startup salary.
edit 3: Opened a pull request with what I think is the fix: https://github.com/vijedi/equity_calculator/pull/4