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Equity Dilution Calculator

Work out equity dilution instantly with clear inputs, formula shown and shareable results.

About Equity Dilution Calculator

Dilution is the fall in your percentage ownership when new shares are issued. Your share count is unchanged; the denominator grows. Distinguish the absolute fall in percentage points from the relative dilution of your stake — the latter is what matters for value.

Formulas

Ownership after

Ownership % = Your shares / (Total shares before + New shares) x 100

Relative dilution

Relative % = (Before % - After %) / Before % x 100

Worked example

With the default values below, Equity Dilution Calculator returns Ownership after the round of 24.000%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Your shares
3,000,000
Total shares before the round
10,000,000
New shares issued
2,500,000

Results

Ownership after the round
24.000%
Ownership before the round
30.000%
Dilution in percentage points
6.000%
Relative dilution of your stake
20.00%

Step by step

  1. 1Values used
  2. 2Ownership after
  3. 3Relative dilution
  4. 4Ownership after the round= 24.000
  5. 5Ownership before the round= 30.000
  6. 6Dilution in percentage points= 6.000
  7. 7Relative dilution of your stake= 20.00

Assumptions and limits

  • The result is derived only from the 3 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 3 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

Is dilution always bad?

No. A smaller share of a much more valuable company is worth more. Dilution only destroys value when the round is priced below what the capital can generate.

What are anti-dilution rights?

Contractual protections, usually for preferred investors, that adjust their conversion price if a later round is priced lower. Founders and common shareholders bear the adjustment.

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