Pre-Money Valuation Calculator

Derive pre-money valuation from the post-money figure and the amount being invested.

About Pre-Money Valuation Calculator

The investor buys their stake out of the post-money value, not the pre-money one, so ownership is investment divided by post-money. Quoting a valuation without saying which side of the round it refers to changes the ownership outcome materially. On a 2 million investment, confusing pre- and post-money at a 10 million headline shifts investor ownership between 16.7% and 20% — a difference founders feel at exit.

Formula

Pre-Money Valuation

Pre-money = post-money − investment; investor ownership = investment ÷ post-money

pre-money: Value of the company before new cash arrives
post-money: Value immediately after the round closes

Worked example

With the default values below, Pre-Money Valuation Calculator returns Pre-Money Valuation of $10,000,000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Post-money valuationminimum 0: 12,000,000
Amount investedminimum 0: 2,000,000

Results

Pre-Money Valuation: $10,000,000
Investor Ownership: 16.67%
Existing Shareholder Ownership: 83.33%
Dilution to Existing Holders: 16.67%
Price per Percentage Point of Equity: $120,000

Step by step

1Values used
2Pre-Money Valuation
3Pre-Money Valuation= 10,000,000
4Investor Ownership= 16.67
5Existing Shareholder Ownership= 83.33
6Dilution to Existing Holders= 16.67
7Price per Percentage Point of Equity= 120,000

Assumptions and limits

The result is derived only from the 2 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 Pre-Money Valuation calculated?

Pre-money = post-money − investment; investor ownership = investment ÷ post-money The investor buys their stake out of the post-money value, not the pre-money one, so ownership is investment divided by post-money. Quoting a valuation without saying which side of the round it refers to changes the ownership outcome materially.

Why does Pre-Money Valuation matter?

On a 2 million investment, confusing pre- and post-money at a 10 million headline shifts investor ownership between 16.7% and 20% — a difference founders feel at exit.

What values do I need to enter?

This calculator takes 2 inputs: Post-money valuation, Amount invested. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.