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Post-Money Valuation Calculator

Add new investment to the pre-money valuation and see the resulting ownership split.

About Post-Money Valuation Calculator

Post-money valuation is a simple sum, but the option pool complicates ownership: it is normally carved out of the pre-money value, so existing holders bear it entirely. That is why effective pre-money is lower than the headline figure. The option pool shuffle is the least-understood term in a term sheet and routinely costs founders several percentage points more dilution than the headline valuation implies.

Formula

Post-Money Valuation

Post-money = pre-money + investment; ownership = investment ÷ post-money

option pool
Shares reserved for employees, usually created out of the pre-money value

Worked example

With the default values below, Post-Money Valuation Calculator returns Post-Money Valuation of $12,000,000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Pre-money valuationminimum 0
10,000,000
Amount investedminimum 0
2,000,000
New option pool created post-roundaccepts 0–100 %
10 %

Results

Post-Money Valuation
$12,000,000
Investor Ownership
16.67%
Existing Shareholder Ownership
75.00%
Effective Pre-Money After Option Pool
$9,000,000
Total Dilution to Existing Holders
25.00%

Step by step

  1. 1Values used
  2. 2Post-Money Valuation
  3. 3Post-Money Valuation= 12,000,000
  4. 4Investor Ownership= 16.67
  5. 5Existing Shareholder Ownership= 75.00
  6. 6Effective Pre-Money After Option Pool= 9,000,000
  7. 7Total Dilution to Existing Holders= 25.00

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 2 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

How is Post-Money Valuation calculated?

Post-money = pre-money + investment; ownership = investment ÷ post-money Post-money valuation is a simple sum, but the option pool complicates ownership: it is normally carved out of the pre-money value, so existing holders bear it entirely. That is why effective pre-money is lower than the headline figure.

Why does Post-Money Valuation matter?

The option pool shuffle is the least-understood term in a term sheet and routinely costs founders several percentage points more dilution than the headline valuation implies.

What values do I need to enter?

This calculator takes 3 inputs: Pre-money valuation, Amount invested, New option pool created post-round. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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