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Pre Money Post Money Valuation Calculator
Work out the numbers behind a startup funding round. Enter the investment and either the pre-money valuation or the percentage of equity being sold to get the post-money valuation, the investor's ownership, what founders keep and, if you add the share count, the price per share and new shares issued.
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What do you know?
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$
%
Optional
For price per share and new shares issued.
%
Your stake today, to see it after the round.
Enter your values to see the result.
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How to use the Pre Money Post Money Valuation Calculator
Choose what you know: the pre-money valuation, or the percentage of the company the investor gets.
Enter the investment amount and the pre-money value or equity percentage.
Optionally enter the fully diluted shares before the round to get the price per share.
Optionally enter a founder's current ownership to see their stake after the round.
Read the post-money valuation, ownership split and the before/after table.
Existing holder's stake after = Stake before × Pre-money ÷ Post-money
Example: $2,000,000 invested at an $8,000,000 pre-money valuation gives a $10,000,000 post-money valuation and 20% for the investor. With 10,000,000 shares before the round the price is $0.80 per share and 2,500,000 new shares are issued. A founder who owned 60% now owns 48%.
Quick reference: investment vs valuation
Investment
Pre-money
Post-money
Investor stake
$250,000
$2,250,000
$2,500,000
10%
$500,000
$4,500,000
$5,000,000
10%
$1,000,000
$4,000,000
$5,000,000
20%
$2,000,000
$8,000,000
$10,000,000
20%
$5,000,000
$15,000,000
$20,000,000
25%
Watch the option pool
Term sheets often require a new or larger employee option pool to be created before the investment, counted inside the pre-money valuation. That lowers the effective price per share and dilutes only existing holders. To model a pool top-up and several shareholders, use the startup equity dilution calculator.
Frequently asked questions
What is the difference between pre-money and post-money valuation?
Pre-money valuation is what the company is worth just before new money comes in. Post-money valuation = pre-money valuation + new investment. A $2 million investment at an $8 million pre-money valuation gives a $10 million post-money valuation.
How do I calculate the investor's ownership?
Investor ownership = investment ÷ post-money valuation. In the example above the investor owns $2M ÷ $10M = 20% of the company after the round.
How do I find the valuation from the percentage sold?
Post-money valuation = investment ÷ equity percentage sold. If an investor puts in $500,000 for 10%, the post-money valuation is $5,000,000 and the pre-money valuation is $4,500,000.
How is the price per share calculated?
Price per share = pre-money valuation ÷ fully diluted shares outstanding before the round. New shares issued = investment ÷ price per share. Fully diluted shares include common and preferred shares, outstanding options and warrants, and usually the unallocated option pool.
How much does a founder get diluted?
Every existing holder keeps pre-money ÷ post-money of their previous stake. A founder with 60% before a round that sells 20% ends with 60% × 80% = 48%. Use the equity dilution calculator for multiple holders and option pool top-ups.
Do SAFEs and convertible notes change this?
Yes. SAFEs and notes usually convert at the priced round, adding shares and diluting existing holders further. Whether they convert before or after the stated valuation depends on the instrument (pre-money or post-money SAFE), so model them explicitly when they exist.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.