Pre Money And Post Money Valuation Calculator
Work out pre money and post money valuation instantly with clear inputs, formula shown and shareable results.
About Pre Money And Post Money Valuation Calculator
Post-money valuation is simply pre-money plus the money invested, and investor ownership is the investment divided by the post-money figure — not the pre-money one. Price per share comes from the pre-money valuation divided by existing shares, which is what sets the number of new shares issued.
Formulas
Post-money
Post-money = Pre-money + Investment
Investor ownership
Ownership % = Investment / Post-money x 100
Price per share
Price = Pre-money / Existing shares
Worked example
With the default values below, Pre Money And Post Money Valuation Calculator returns Post-money valuation of $10,000,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Pre-money valuation
- 8,000,000
- Investment amount
- 2,000,000
- Existing shares outstanding
- 8,000,000
Results
- Post-money valuation
- $10,000,000.00
- Investor ownership after the round
- 20.00%
- Price per share
- $1.0000
- New shares issued
- 2,000,000
Step by step
- 1Values used
- 2Post-money
- 3Investor ownership
- 4Price per share
- 5Post-money valuation= 10,000,000.00
- 6Investor ownership after the round= 20.00
- 7Price per share= 1.0000
- 8New shares issued= 2,000,000
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 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
Why divide by post-money rather than pre-money?
Because the new shares exist in the post-money cap table. Using pre-money overstates the investor's stake — a classic term sheet error.
Does the option pool come before or after?
Almost always before, inside the pre-money valuation. That makes the pool dilutive to founders, not to the incoming investor.
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