Post-Money Valuation Calculator
Work out a startup's post-money valuation, investor ownership and founder dilution from a pre-money valuation and investment — or reverse it to find the implied valuation from an ownership stake.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Post-money valuation
Enter the pre-money valuation and the investment amount (both greater than zero).
What is a post-money valuation calculator?
When a startup raises money, two valuations matter: the pre-money value (before the investment) and the post-money value (immediately after). This calculator computes post-money valuation, the investor’s ownership stake and the resulting founder dilution — and can work in reverse from an agreed ownership percentage.
The formulas
- Post-money = Pre-money + Investment
- Investor ownership % = Investment ÷ Post-money × 100
- Founder ownership % = 100 − Investor ownership %
- Reverse: Post-money = Investment ÷ Investor ownership %; Pre-money = Post-money − Investment
Pre-money vs post-money
The distinction matters because ownership is calculated on the post-money figure. A “$4M valuation” means very different things pre- and post-money for a $1M round: at $4M pre-money the investor gets 20% ($1M of $5M), but at $4M post-money they get 25% ($1M of $4M).
Example
A $4M pre-money valuation with a $1M investment gives a $5M post-money valuation. The investor owns 20% and founders retain 80%.
Founder dilution — and why it is not the enemy
Each round issues new shares, reducing existing owners' percentages, so it is tempting to treat dilution as pure loss. It is not. The right question is never “how much of the company do I still own?” but “how much is my stake now worth?” Raising $1M at a $4M pre-money valuation dilutes founders from 100% to 80%, but if that capital helps the company grow to a $20M valuation at the next round, the founders' 80% is worth far more than their undiluted 100% ever was. Dilution only hurts when a round is raised at a low valuation or the capital fails to create proportionate value. This calculator models a single round; real cap tables also involve option pools, SAFEs, convertible notes and multiple rounds, all of which add further dilution, so treat the output as an illustrative starting point.
Related calculators
Estimate the valuation itself with the startup valuation calculator, and for established companies the company valuation and business valuation calculators.
Frequently asked questions
What is post-money valuation?
Post-money valuation is a company's value immediately after it receives an investment. It equals the pre-money valuation plus the new investment amount.
What is the difference between pre-money and post-money?
Pre-money is the company's value before the investment. Post-money is the value straight after: post-money = pre-money + investment. The investor's ownership is based on the post-money figure.
How do you calculate investor ownership?
Investor ownership % = investment ÷ post-money valuation × 100. For example, a $1M investment at a $5M post-money valuation buys 20% of the company. Founders retain the remaining 80%.
How does funding dilute founders?
Issuing new shares to an investor increases the total shares, so existing owners hold a smaller percentage. A $1M round at $4M pre-money dilutes founders from 100% to 80%. This calculator shows a single round; option pools and multiple rounds add further dilution.
Is dilution always bad for founders?
No — this is one of the most important ideas in startup finance. Dilution reduces the percentage you own, but if the capital raised grows the company's value, a smaller slice of a much larger pie can be worth far more than your original whole. Owning 60% of a company worth $100M beats owning 100% of one worth $2M. The goal is not to avoid dilution but to make sure each round of it buys enough growth to more than compensate for the ownership given up.
What is an option pool and how does it affect the numbers?
An option pool is a block of shares set aside to grant to future employees. Investors often require it to be created before their investment, which means it comes out of the pre-money valuation and dilutes the founders further — sometimes called the ‘option pool shuffle’. This calculator models a single round without a pool, so if your term sheet includes one, your actual founder ownership after the round will be lower than the simple figure shown here.
How do SAFEs and convertible notes fit in?
SAFEs and convertible notes are instruments that raise money now and convert into equity later, usually at the next priced round, often with a discount or valuation cap. Because they convert into shares down the line, they cause dilution that is not visible in a single pre-money/post-money calculation. If you have outstanding SAFEs or notes, treat this calculator's output as an approximation and model their conversion separately to see the true fully-diluted ownership.
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Startup Valuation
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Company Valuation
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Business Valuation
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Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Ownership and valuation calculations are illustrative and do not account for all legal, financing, option-pool or dilution considerations.