Equity Dilution Calculator
BusinessCalculate the dilution percentage from a new funding round, based on pre-money valuation and investment amount.
Dilution Percentage
The percentage of the company existing shareholders are diluted by, equal to the new investor ownership stake.
Post-Money Valuation
$5,000,000
The company valuation immediately after this funding round closes.
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Odeh Ahwal0people find this calculator helpful
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Frequently Asked Questions
What is the difference between pre-money and post-money valuation?
Pre-money valuation is what the company is worth before new investment is added, while post-money valuation adds the new investment amount on top, representing the company total worth immediately after the round closes.
Does dilution mean existing shareholders lose money?
Not necessarily — dilution reduces ownership percentage, but if the new funding increases the company total value enough, an existing shareholder smaller percentage of a larger pie can still be worth more in dollar terms than before.
Does this account for an option pool or convertible notes?
No, this is a simplified calculation for a straightforward priced equity round. Option pool expansions and convertible note conversions add additional dilution complexity not captured in this basic formula.
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