Based on the previous research results of the authors, this paper presents an accurate and consistent equation for determining the ultimate shear-out capacity of a structural steel bolted connection. The equation is verified against independent laboratory test results obtained by other researchers around the world. Comparisons against alternative equations found in the design specifications and literature are also included. The paper explains why certain equations appear to be accurate for particular configurations, but are grossly inaccurate for others. This paper describes the various assumptions embedded in the existing equations, some optimistic and others pessimistic. It shows that the current code equations lead to very significant errors on either side of conservatism, while the proposed equation is consistently accurate for all test specimens known to fail in shear-out. A resistance factor of 0.85 is recommended for the proposed equation in order to achieve a reliability index of 4.0. The use of the proposed equation instead of the current AISC specification’s equation will facilitate structural designs that are more economical yet reliable.