Equity Dilution Calculator
Raising money means giving up a slice of your company. Enter your pre-money valuation, how much you're raising, and your current ownership to see exactly how much of the business you'll own after the round.
Enter your numbers to see your stake after the round
How dilution works
When you raise money, new shares are created and handed to investors. Your number of shares stays the same, but the total grows — so your percentage of the whole shrinks. Post-money valuation is simply the pre-money valuation plus the amount raised. Investors' ownership is the amount they put in divided by that post-money figure.
If your company is valued at $4,000,000 before the round and you raise $1,000,000, the post-money valuation is $5,000,000 and the investors own 20%. Everyone who held shares before the round is diluted by the same proportion.
Why a higher valuation is not always better
Founders fixate on a high valuation to minimise dilution, but a valuation set too high creates pressure to grow into it before the next round. Falling short can force a "down round" that dilutes you far more. Raising the right amount at a fair valuation usually beats squeezing out the last percent.
Plan several rounds ahead
Most startups raise more than once, and each round dilutes you again — including the option pool you set aside for employees. Modelling two or three rounds early shows whether you'll still own enough of the company to stay motivated by the time it matters.
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