BUSINESS · FUNDRAISING

Equity dilution calculator

Estimate how a new investment round could change existing ownership in a simple share-based scenario.

YOUR OWNERSHIP AFTER THE ROUND

0%

Simple scenario before option pools and other changes

Ownership before 0%

New investor ownership 0%

New shares issued 0

Post-money valuation $0

How equity dilution is calculated

The estimated new shares equal the existing shares multiplied by investment divided by pre-money valuation. Your ownership is your unchanged share count divided by total shares after the issue.

New shares = existing shares × investment ÷ pre-money valuation

Static examples

Founder beforePre-money / investmentInvestor afterFounder after
60%$4m / $1m20%48%
50%$8m / $2m20%40%
40%$3m / $3m50%20%

Questions

Why can the outcome differ from a term sheet?

Option pools, convertibles, SAFEs, preferences and the agreed cap-table mechanics can change the result.