Free Pre-Money/Post-Money Calculator
Calculate pre-money and post-money valuations, investor ownership percentage, and share prices for your funding round.
Calculation Mode
Investment Details
Used to calculate price per share
Select a mode and enter values to calculate valuation
How to Use the Pre-Money/Post-Money Calculator
Enter Valuation Information
Input either pre-money or post-money valuation. The calculator will compute the other automatically once you enter the investment amount.
Input Investment Amount
Enter the total investment amount being raised in this round. This determines the conversion between pre-money and post-money valuations.
Add Share Details (Optional)
For price per share calculations, enter your current shares outstanding. The calculator will determine the share price and new shares issued to investors.
Review Ownership Breakdown
See the investor ownership percentage, existing shareholder dilution, and post-money cap table. Verify the math before signing term sheets.
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Understanding Startup Valuations
Understanding the difference between pre-money and post-money valuation is critical for negotiating funding rounds. These terms determine how much of your company you are giving away and at what price investors are buying shares.
Key Formulas
- Post-Money = Pre-Money + Investment Amount
- Investor % = Investment ÷ Post-Money × 100
- Share Price = Pre-Money ÷ Existing Shares
- New Shares = Investment ÷ Share Price
Frequently Asked Questions
What is the difference between pre-money and post-money valuation?
Pre-money valuation is your company value before receiving investment. Post-money valuation is pre-money plus the investment amount. For example, $4M pre-money + $1M investment = $5M post-money valuation.
How do I calculate investor ownership percentage?
Investor ownership = Investment Amount ÷ Post-Money Valuation × 100. If an investor puts in $1M at a $5M post-money valuation, they own 20% ($1M ÷ $5M = 20%).
What is price per share and how is it calculated?
Price per share = Pre-Money Valuation ÷ Shares Outstanding. If your pre-money is $4M and you have 10M shares, each share is worth $0.40. New investors buy shares at this price.
Should I negotiate on pre-money or post-money valuation?
Always clarify which valuation is being discussed. A $5M pre-money with $1M investment differs from $5M post-money with $1M investment. Pre-money gives founders better terms (investor gets 16.7% vs 20%).
How does the option pool affect valuation?
Investors often require an option pool (10-20% of shares) set aside before investment from the pre-money valuation. This dilutes founders more. A 20% option pool effectively reduces your valuation.
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