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Free tools / Pre-Money / Post-Money Calculator

Work out your dilution before you raise

Pre-money, post-money and the exact percentage you give away, plus what you keep.

Currency
▾
$5.00Mpost-money
You give up 20.0% of the company for this round.
Investor takes
20.0%
You keep
80.0%

A single round around 15-20% dilution is normal; much over a third for one round usually means the valuation was too low for what you raised. This ignores option-pool top-ups, which dilute founders further.

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Pre-money plus the raise gives post-money, and the share you give up.

When you raise a round, the investment buys a slice of the company. Enter your pre-money valuation and the amount you're raising to see your post-money valuation and exactly how much ownership you hand over.

Post-money valuation = pre-money valuation + the amount raised. The investor's ownership is the amount raised ÷ post-money, and your dilution is that same percentage.

Pre vs post is where founders get caught: a $1M raise at a $4M pre-money is 20% dilution (post-money $5M), but the same $1M at a $4M post-money is 25%. Always be clear which one you're negotiating.

A single early round around 15-20% dilution is normal. Much more than a third for one round usually means the valuation was too low. And this ignores option-pool top-ups, which dilute founders further still.

Want proof it’s not made up? See real ideas run through this tool: the buyer, the spots, and the opener actually sent.

Questions

3 answered
1

How do I calculate post-money valuation?

Add the amount you're raising to your pre-money valuation. So a $4M pre-money plus a $1M raise is a $5M post-money. Enter both above to also see the investor's ownership and your dilution.

2

How much equity do you give up in a funding round?

The investor's share is the amount raised divided by the post-money valuation. Raising $1M at a $5M post-money gives them 20%, which is also your dilution. A single early round around 15-20% is normal.

3

What is the difference between pre-money and post-money?

Pre-money is the company's value before the new investment; post-money is pre-money plus the amount raised. The same dollar raise means more dilution against a post-money number than a pre-money one, so always clarify which is being quoted.