Every funding round gives investors a share of the company, and the founders own a smaller slice of a bigger business. Use this calculator to see exactly how much of the company you keep after a round.
How dilution works
The investor stake comes from a simple relationship. Post-money valuation equals the pre-money valuation plus the new investment, and the investor owns the investment divided by the post-money valuation. Everyone who owned shares before the round keeps their shares, but each share now represents a smaller percentage of a larger company.
The formulas
- Post-money valuation = pre-money valuation + investment
- Investor stake (%) = investment / post-money valuation x 100
- Your ownership after = your ownership before x (1 – investor stake – new option pool)
- Value of your stake = your ownership after x post-money valuation
Worked example
A company is valued at Rs 8 crore before the round, and an investor puts in Rs 2 crore. The post-money valuation is Rs 10 crore and the investor owns 20%. A founder who held 60% before the round now holds 60 x (1 – 0.20) = 48%, which is worth Rs 4.8 crore. The founder gave up 12 percentage points of ownership, but the company has Rs 2 crore of new cash to grow with.
Option pools
Investors often ask the company to set aside a pool of shares for future employees. If you add that pool in the same round, enter it in the last field. It dilutes the existing owners further, and the calculator accounts for it.
Frequently asked questions
Is dilution always bad?
No. Owning a smaller share of a company that is worth much more can be better than owning all of a company that cannot grow. What matters is what the money lets you build.
What about convertible notes and SAFEs?
They convert into shares at a later round, using a cap or a discount. This calculator covers a priced round, so treat SAFE outcomes as an estimate only.
Does this include earlier investors?
Enter your own ownership percentage immediately before the round, after any earlier dilution.
This calculator is provided for general information and planning only. It is not accounting, tax, legal or investment advice, and the results depend entirely on the numbers you enter. Please confirm important figures with a qualified professional.