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Funding round

Equity Dilution Calculator

How much smaller does your stake get when you raise?

Enter the pre-money valuation, the investment amount and each founder's current stake. We show the post-money valuation, the investor's stake and the founders' new stakes in a before-and-after table. You can add an employee option pool too.

Cost
Free
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Your data
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The value put on the company before the investment comes in.

The money coming into the company in this round.

Founders

Optional: employee option pool

What percentage of all shares will be set aside for employees after the round? Leave blank for no pool.

When is the pool created?

Opened with example figures; enter your own. Amounts are in Turkish lira (₺); the maths works the same in any currency.

Result

Post-money valuation…
Investor's stake
…
Founders' combined stake
…
Before
After

    Cap table: before and after

    ShareholderBeforeAfterChangeValue at the round price

    Everything is calculated in your browser. We do not save your figures; they are only written into this page's address so you can share it. If you ask for the result by email, your figures go to our server only to create that email and are not stored. Results are estimates based on your assumptions; they are not financial or legal advice.

    How it is calculated

    The formula in plain English; each step builds on the one before.

    1. 01

      Post-money valuation

      Pre-money + Investment amount

      Post-money is the value of the company including the investment.

    2. 02

      Investor's stake

      Investment amount ÷ Post-money

      The investor gets a stake equal to their money as a share of the post-money valuation.

    3. 03

      Founder's new stake

      Old stake × Pre-money ÷ Post-money

      The percentage shrinks, but because the company is worth more after the investment, the stake's value at the round price stays the same.

    4. 04

      Employee option pool

      Before the round: old stake × (1 − investor's stake − pool). After the round: every stake × (1 − pool)

      A pool set aside before the round comes out of the valuation, so it dilutes the founders more. We show its effect as the effective pre-money valuation: pre-money − pool × post-money.

    Frequently asked questions

    Can't find your answer here? Write to us.

    What do pre-money and post-money mean?

    Pre-money is the value put on the company before the investment comes in. Post-money is that value plus the investment. The investor's stake is the investment divided by the post-money valuation.

    Why does the employee option pool affect my stake?

    New shares are set aside for the pool. If it is created before the round, those shares come only out of the existing shareholders' stakes; if it is created after, everyone, the investor included, is diluted pro rata. In the negotiation, ask which valuation the pool comes out of.

    Is dilution a bad thing?

    Your percentage gets smaller, but because the company is worth more, your stake's value at the round price can stay the same. The real question is whether the money will grow the company by more than the difference.

    Does this work for a SAFE or a convertible note?

    This tool calculates a priced round. SAFEs and convertible notes convert into shares on terms such as a discount and a valuation cap, and the result depends on those terms. For that calculation, check the terms in your agreement and talk to an expert.

    Related articles

    We explain the thinking behind the numbers on our blog, in Turkish.

    Run another calculation.

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