Pre and Post Money Valuation Calculator
Pre- and Post-Money Valuation Calculator
Enter any two values to solve the complete funding-round valuation, ownership, and dilution picture in real time.
Funding round inputs
The two most recently edited fields become the calculation basis. The other two update automatically.
New cash invested in this financing round.
Post-money ownership issued to the new investor.
Equity value immediately before the new investment.
Equity value immediately after the investment closes.
Live valuation result
All figures use a simple equity financing model with no debt, fees, option-pool expansion, or convertible instruments.
Post-money ownership breakdown
The financing leaves existing holders with 95.00% and gives the new investor 5.00%.
Valuation relationship table
The same model values drive this table, the ownership chart, the summary cards, and the Excel workbook.
| Metric | Relationship | Current value |
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What this valuation calculator estimates
This tool solves the four linked values in a straightforward priced equity round: investment amount, investor ownership, pre-money valuation, and post-money valuation. It is designed for quick scenario testing during fundraising discussions, cap-table planning, and term-sheet review. The result is an implied valuation relationship, not an independent appraisal of what a company should be worth. Revenue quality, growth, margins, intellectual property, market conditions, liquidation preferences, and negotiating leverage can all affect the actual deal.
How to use the four fields
Investment amount
Enter the new cash that will be invested at closing, in U.S. dollars. This field is required only when it is one of the two known inputs. A larger investment raises post-money valuation dollar-for-dollar when pre-money valuation is fixed. When ownership is fixed instead, a larger investment increases both pre-money and post-money valuations proportionally. Do not include existing cash already on the balance sheet unless the transaction documents explicitly treat it as new consideration.
Investor's equity
Enter the percentage of the company the new investor will own immediately after the financing. Use a number between 0% and 100%. Higher investor ownership means more dilution for existing holders. When investment is fixed, a higher ownership percentage implies a lower valuation. This simplified percentage assumes the quoted stake is calculated on the same fully diluted basis as the valuation; option-pool top-ups, warrants, and convertibles can change the effective dilution.
Pre-money valuation
Pre-money valuation is the equity value immediately before the new capital enters the company. It excludes the current round's investment. When investment and pre-money are known, the calculator adds them to obtain post-money, then divides investment by post-money to obtain investor ownership. Avoid mixing enterprise value with equity value: debt and excess cash adjustments belong in a more detailed valuation model.
Post-money valuation
Post-money valuation is the equity value immediately after the investment. It equals pre-money valuation plus the new investment in this model. When post-money and ownership are known, the calculator multiplies them to determine investment and assigns the remainder to pre-money value. A post-money valuation cannot be lower than the investment or the pre-money valuation under this simplified structure.
How the formulas work
The core equations are: post-money valuation equals pre-money valuation plus investment; investor ownership equals investment divided by post-money valuation; and existing-holder ownership equals one minus investor ownership. Because the four variables are linked, any valid pair determines the other two. For example, a $25,000 investment for 5% produces a $500,000 post-money valuation because $25,000 divided by 5% is $500,000. Subtracting the investment gives a $475,000 pre-money valuation.
The calculator treats the two most recently edited fields as the known pair. Badges show which fields are currently known and which are calculated. This avoids circular inputs while still letting you work from any common negotiation starting point. Currency and percent symbols may be typed or omitted; commas and spaces are accepted.
How to interpret the outputs and chart
The primary result is post-money valuation, the total implied equity value after financing. Pre-money valuation represents the value attributed to existing shareholders before the new cash. Investment is the capital contributed by the new investor. Investor ownership is the dilution issued in the round, while existing-holder ownership is the residual percentage after closing. A zero investment can produce zero dilution when pre-money and post-money are equal, but a positive investment cannot support zero investor ownership.
The ownership donut shows percentage ownership after closing. The legend also converts each percentage into implied equity value using the post-money valuation. The table restates every relationship, making it easier to audit the arithmetic. After reset, the calculator intentionally clears the example values; enter any two fields to rebuild the model and chart.
Practical limits and common mistakes
- Confirm whether a quoted valuation is pre-money or post-money. The difference equals the investment amount.
- Use the same capitalization basis for ownership and valuation. A pre-financing option-pool increase can shift dilution toward existing holders.
- Do not treat a valuation cap in a SAFE or convertible note as automatically equal to the priced-round valuation.
- Model liquidation preferences, participation rights, transaction fees, and multiple investors separately when they are material.
- Use the output as a negotiation and planning aid, not as personalized legal, tax, or investment advice.
Authoritative fundraising resources
Founders can review the U.S. Securities and Exchange Commission's capital-raising building blocks and its overview of pathways for raising capital from investors. The U.S. Small Business Administration explains broader business funding choices. For venture financings, the National Venture Capital Association publishes widely used model legal documents. For additional terminology, Investopedia provides a plain-language explanation of pre-money versus post-money valuation.