Startup Equity Calculator
Post-money value with new-investor ownership. Live startup equity calculator with worked steps and charts.
Calculator
Results
Post-Money Valuation
$5,000,000.00
20.00%
$4,000,000.00
Live results update as you type — currently showing post-money valuation of $5,000,000.00. Replace the defaults with your own numbers.
Visualizations
Ownership
Formula
Pre-money plus new cash equals post-money; the check divided by post is the stake.
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| Pre | Pre-money | $ | Before |
| I | Investment | $ | New cash |
Explanation
What the round buys.
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
Post = pre + investment = $4,000,000.00 + $1,000,000.00
Dilution = investment / post
Worked Examples
See how the calculator works with different scenarios.
Scenario
The startup equity calculator run on the values above.
Inputs
Calculation
1. Post = pre + investment = $4,000,000.00 + $1,000,000.00 → $5,000,000.00 2. Dilution = investment / post → 20.00%
Result
Post-Money Valuation: $5,000,000.00
Interpretation
$1,000,000.00 buys 20.00% at a $4,000,000.00 pre.
Understanding Your Result
Your Result: Post-Money Valuation: $5,000,000.00
What This Means
What the round buys.
Why It Matters
$1,000,000.00 buys 20.00% at a $4,000,000.00 pre.
Professional Interpretation
$1,000,000.00 buys 20.00% at a $4,000,000.00 pre.
How this is calculated
Pre-money plus new cash equals post-money; the check divided by post is the stake.
What drives the result
Contribution covers fixed costs first, then becomes profit. Cash - not accounting profit - pays bills, so OCF and FCF sit beside every margin. Multiples and DCF translate those cash streams into what a buyer should pay.
Recommendations
- •Model two rounds ahead - dilution compounds.
- •Option pools pre-money come from founders.
Educational Content
Introduction
Business finance turns sales into staying power: margins measure pricing power, break-even marks survival, cash flow funds payroll, and valuation prices the whole machine. One consistent model connects them all.
Concept Explanation
Contribution covers fixed costs first, then becomes profit. Cash - not accounting profit - pays bills, so OCF and FCF sit beside every margin. Multiples and DCF translate those cash streams into what a buyer should pay.
Applications
Benefits
- •Margin-first pricing
- •Cash-aware decisions
- •Buyer-grade valuation ranges
Limitations
- •Single-period simplifications
- •Book values vs market values
- •Forecasts depend on honest growth inputs
Best Practices
- •Price to margin, track cash weekly
- •Triangulate value with 2-3 methods
- •Model dilution two rounds ahead
Common Misconceptions
Practical Tips
- •Model two rounds ahead.
Common Mistakes
Assumptions
This calculator makes the following assumptions to provide estimates:
Limitations
Be aware of these limitations when using this calculator:
Frequently Asked Questions
Answers to common questions about this calculator.
Option pool?
Who uses the startup equity calculator?
How accurate is the startup equity calculator?
Margin or markup - which should I use?
Related Calculators
Explore more calculators related to this topic.
Related Guides
Deepen your understanding with these educational resources.
Glossary
Technical terms used in mortgage calculations explained in plain language.
- Dilution
- Founders owning less after new shares are issued.
Authoritative References
Trusted sources and standards referenced by this calculator.
Applicable Standards
Was This Calculator Helpful?
Page Information
2026-09-22
2.0.0
Free to use for educational and professional purposes.