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Convertible Note Conversion Calculator

Work out convertible note conversion instantly with clear inputs, formula shown and shareable results.

About Convertible Note Conversion Calculator

A convertible note converts principal plus accrued interest at a discount to the priced round. This calculator normalises the round price to 1.00 per share so the conversion price is shown as a fraction of it — multiply the share count by your actual round price to scale the result.

Formulas

Converting amount

Amount = Principal + (Principal x Rate x Years)

Conversion price

Conversion price = Round price x (1 - Discount %)

Shares

Shares = Converting amount / Conversion price

Worked example

With the default values below, Convertible Note Conversion Calculator returns Amount converting to equity of $545,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Note principal
500,000
Simple interest rate
6
Years outstanding
1.5
Conversion discount to round price
20

Results

Amount converting to equity
$545,000.00
Accrued interest
$45,000.00
Conversion price per share
$0.8000
Shares issued on conversion
681,250

Step by step

  1. 1Values used
  2. 2Converting amount
  3. 3Conversion price
  4. 4Shares
  5. 5Amount converting to equity= 545,000.00
  6. 6Accrued interest= 45,000.00
  7. 7Conversion price per share= 0.8000
  8. 8Shares issued on conversion= 681,250

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Does a valuation cap also apply?

Usually yes, and the investor takes whichever of the cap price and the discount price is lower. Model both and use the more favourable.

Is accrued interest paid in cash?

Rarely. On a convertible note it normally converts into equity alongside the principal, which is why it increases the share count.

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