Free founder tool
Pre-money and post-money valuation calculator
See what a round means for ownership, share price and the option pool. Change the numbers for an instant result. Free, with no account or login.
Shares and money are rounded for display; ownership uses the full calculation.
| Measure | Result |
|---|---|
| Post-money valuation | $10,000,000.00 |
| Investor ownership | 20.00% |
| Price per share | $0.88 |
| New investor shares | 2,285,714 |
| New pool shares | 1,142,857 |
| Holder | Shares before | Before | Shares after | After |
|---|---|---|---|---|
| Existing holders | 8,000,000 | 100.00% | 8,000,000 | 70.00% |
| New pool | 0 | 0.00% | 1,142,857 | 10.00% |
| New investors | 0 | 0.00% | 2,285,714 | 20.00% |
These figures come from the numbers you enter. Vanward does not check or validate them, and this is not a valuation, a 409A, or legal or tax advice. Your company's cap table and signed documents are the record.
How the math works
Post-money valuation equals pre-money valuation plus the new investment. Without a pool increase, investor ownership is the investment divided by post-money. Price per share is pre-money divided by the fully diluted shares used to price the round.
For example, an $8,000,000 pre-money valuation plus $2,000,000 invested gives $10,000,000 post-money. With 8,000,000 existing shares and no pool increase, the price is $1.00 per share. The investor receives 2,000,000 shares and owns 20.00 percent. Existing holders retain 80.00 percent.
A new pool changes who absorbs dilution. A 10.00 percent post-round pool carved out of that pre-money leaves existing holders with 70.00 percent, the pool with 10.00 percent, and the investor with 20.00 percent. If the same pool is added after the investment, existing holders own 72.00 percent and the investor owns 18.00 percent. The top-up is additional to the existing shares you enter.
For a worked explanation, read pre-money versus post-money valuation and the option pool shuffle. For common stock valuation used with option grants, read what a 409A valuation is and when a startup needs one. This calculator does not produce a 409A appraisal.
Questions founders ask
- What is the difference between pre-money and post-money valuation?
- Pre-money is the agreed equity value before the new investment. Post-money is pre-money plus the new cash invested. An $8 million pre-money valuation and a $2 million investment give a $10 million post-money valuation.
- How do I calculate investor ownership?
- Without a pool added after the investment, divide the investment by the post-money valuation. A $2 million investment at $10 million post-money buys 20.00 percent. A pool added afterward dilutes that percentage.
- What does a pool top-up in the pre-money mean?
- The new pool shares enter the share count used to set the round price. Existing holders absorb the top-up, while the new investor keeps the ownership percentage agreed for the investment.
- What should I enter for fully diluted shares?
- Enter existing shares plus shares from outstanding options, warrants and other rights you count in your fully diluted total. This calculator groups them as existing holders and models the pool top-up separately. Model converting SAFEs with the SAFE calculator.
- Does this calculator determine what my company is worth?
- No. It calculates the ownership implied by a valuation and investment you enter. It does not value the business or replace a 409A, the cap table, signed agreements, or advice from your own advisers.