Model equity dilution across funding rounds with pre/post-money valuation, option pool, and cap table impact visualization.
Funding-round ownership changes become concrete here: enter the existing cap table, a round's pre-money valuation and investment, and any option-pool assumption. The calculator derives the post-money capitalization and shows each holder's resulting ownership across successive rounds. A common surprise is that a holder can keep exactly the same number of shares while owning less of the company because newly issued investor shares or reserved option shares increase the fully diluted total.
A concrete input and expected output from the current implementation.
Input
Founder shares: 1,000,000 Pre-money valuation: $4,000,000 New investment: $1,000,000 Option pool increase: 0%
Expected output
Implied share price: $4.00; new investor shares: 250,000; post-money valuation: $5,000,000; total shares after financing: 1,250,000; founder ownership: 80.00%; investor ownership: 20.00%.
The $4,000,000 pre-money valuation divided by 1,000,000 existing shares gives a $4.00 share price. The investor receives 250,000 shares for $1,000,000, leaving the founder with 1,000,000 of 1,250,000 shares, or 80%.
With no pool change, the implied price per share is the pre-money valuation divided by the pre-round fully diluted share count. New investor shares equal the investment divided by that price. Post-money valuation is pre-money valuation plus the new investment, while each holder's post-round percentage is its share count divided by the new fully diluted total.
Existing share counts carry into each subsequent round, and new investor or option-pool shares expand the denominator used for ownership percentages. This makes dilution compound across rounds instead of resetting. The cap table visualization summarizes percentage ownership after each modeled transaction, but it is a scenario calculation rather than the company's authoritative stock ledger.
Ownership is a fraction, not just a share count. When the company issues shares to a new investor or adds shares to the fully diluted option pool, the denominator increases. Your unchanged shares then represent a smaller percentage of the total. The calculator shows this percentage dilution without implying that your shares were taken away.
No. It applies the financing's headline valuation to the modeled capitalization. It does not establish a liquid sale price for common shares or account for transfer restrictions, liquidation preferences, taxes, vesting, or future company performance. Use it to compare ownership scenarios, not as a definitive appraisal or payout forecast.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
Calculate gross, operating, and net profit margins from cost and revenue with breakeven analysis.
Convert between annual salary and hourly rate with adjustments for work hours, overtime, and benefits.
Calculate sales tax amounts, tax-inclusive and tax-exclusive prices for any tax rate or jurisdiction.
Calculate return on investment from initial cost and final value with annualized ROI and comparison tables.
Convert between markup and margin percentages, calculate selling price, and compare pricing strategies.
Convert numeric amounts to written words for invoices, checks, and legal documents in multiple currencies.