About the Pre-Money / Post-Money Valuation Calculator
This calculator converts between pre-money and post-money valuation for a priced equity round and shows how much of the company the new investors will own. Enter the pre-money valuation and the amount raised, or start from a post-money valuation or a target ownership percentage, and it fills in the rest.
Founders use it to sanity-check a term sheet, angel investors use it to understand what their cheque buys, and early employees use it to see how a round affects the share price. Add the number of fully diluted shares outstanding before the round to get the price per share and the number of new shares the company must issue.
The math assumes a single priced round with no option-pool top-up and no SAFEs or convertible notes converting at the same time. If those apply, use the option pool or SAFE calculators alongside this one.
With the default inputs, the post-money valuation is $10,000,000.00. Change any value above to recalculate instantly.
How to use the pre-money / post-money valuation calculator
- 1Choose which figure you already know: pre-money, post-money or investor ownership.
- 2Enter that figure and the total amount being raised.
- 3Enter fully diluted shares outstanding before the round to get share price and new shares.
- 4Read the post-money valuation, investor ownership and dilution to existing holders.
Formula and method
Pre-money valuation is what the company is worth immediately before new money comes in; post-money is that value plus the cash invested. Because the investor pays the same price per share as the pre-money value implies, their ownership is simply the investment divided by the post-money valuation.
The price per share is the pre-money valuation divided by the fully diluted share count before the round (including the option pool). Dividing the investment by that price gives the number of new shares issued. If you enter an ownership target instead, post-money = investment ÷ ownership.
- Pre-money
- Company value before the investment
- Post-money
- Company value including the new cash
- Investment
- Total amount raised in the round
- Investor %
- Share of the company new investors own after closing
Worked examples
$2M raised on an $8M pre-money
Adding $2M to an $8M pre-money gives a $10M post-money valuation, so the investors own 2 ÷ 10 = 20%. With 8 million shares outstanding the price is $1.00 per share, so 2 million new shares are issued.
Term sheet quoted as post-money
A $5M raise at a $25M post-money means the pre-money is $20M. Investors own 20%. Spread over 10 million existing shares, the price is $2.00 and 2.5 million new shares are created.
Investor wants 15% for $1.5M
If $1.5M must buy 15%, the implied post-money is 1.5M ÷ 0.15 = $10M and the pre-money is $8.5M. With 8 million shares the price is $1.0625, so about 1.41 million new shares are issued.
Frequently asked questions
What is the difference between pre-money and post-money valuation?+
Pre-money valuation is the value of the company before new investment; post-money valuation is pre-money plus the new cash. A $2M raise on an $8M pre-money gives a $10M post-money.
How do I calculate investor ownership?+
Divide the investment by the post-money valuation. $2M invested at a $10M post-money buys 20% of the company, whatever the share count.
Why does the option pool matter for pre-money valuation?+
Investors often require the option pool to be created or enlarged before the round, inside the pre-money. That lowers the effective pre-money for founders — the “option pool shuffle”. Use the option pool calculator to model it.
Is a higher pre-money valuation always better?+
A higher pre-money means less dilution now, but it sets a higher bar for the next round. If the company cannot grow into it, a later down round can hurt founders and employees more than modest dilution today.
What does fully diluted shares mean?+
Fully diluted shares count all common and preferred shares plus every granted option, warrant and unallocated option-pool share, as if all were exercised. Priced rounds normally set the price per share on this basis.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.