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Pre and Post Money Valuation Calculator

Calculate pre-money and post-money valuation from a startup funding round, then see investor ownership, founder ownership, and the post-money step-up.

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Compare pre-money and post-money valuation in one priced round This pre-money valuation calculator shows how a startup funding round changes company value, investor ownership, and founder dilution. It is also the post-money valuation calculator searchers usually mean when they want the same round math from the investor side.

Display currency

Round math

Post-money valuation = pre-money valuation + new investment. Investor ownership is investment divided by post-money, and founder ownership is the remainder.

Result

$6,000,000.00 post-money

A $1,000,000.00 investment on a $5,000,000.00 pre-money valuation gives the investor 16.67% ownership.

Post-money valuation
$6,000,000.00
Investor ownership
16.67%
Founder ownership
83.33%
Post-money / pre-money
1.2x
Why the ownership split matters The investor buys 16.67% of the company in this priced round, which leaves 83.33% with the founders before any option pool, SAFE, or convertible-note adjustment is layered on top.
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Pre-money and post-money valuation calculator guide

A pre-money valuation calculator helps you see how a startup funding round changes company value and ownership. This calculator also works as a post-money valuation calculator because it starts from the pre-money valuation, adds the new investment, and shows how much of the company the investor buys. For founders and investors, the key question is not only what the round values the company at, but how the round changes the cap table.

Pre-money vs post-money

Pre-money valuation is the company value before the new money goes in. Post-money valuation is the company value after the round closes, so it includes the new investment.

That distinction matters because the same dollar amount can mean very different dilution depending on whether the term sheet is written on a pre-money or post-money basis. A small change in wording can change the ownership outcome materially.

Post-money valuation = Pre-money valuation + New investment

The basic priced-round bridge used by this calculator.

Investor ownership = New investment / Post-money valuation

Shows the investor's ownership percentage after the round.

Founder ownership = Pre-money valuation / Post-money valuation

Shows the founder side of the cap table after the priced round.

How dilution works in a priced round

If a founder raises money at a 5 million pre-money valuation and accepts a 1 million investment, the post-money valuation is 6 million. In that case the investor owns 16.67 percent of the company and the founders own 83.33 percent before any option-pool or convertible-securities adjustments.

The calculator's round multiple helps show the same result from another angle. A 6 million post-money valuation on a 5 million pre-money valuation is a 1.20x step-up, which is just another way of describing the same funding round.

Round multiple = Post-money valuation / Pre-money valuation

Useful for quickly comparing how large the funding step-up is relative to the original valuation.

Worked example

Suppose the pre-money valuation is 5,000,000 and the new investment is 1,000,000. The post-money valuation becomes 6,000,000. Investor ownership is 1,000,000 divided by 6,000,000, or 16.67 percent.

Founders keep 83.33 percent in this simplified priced round. If the same round had a larger option pool or an additional SAFE conversion, the actual ownership split would move, which is why this calculator is best used as a round-planning estimate rather than a final cap-table model.

What this calculator does not model

This calculator is intentionally simple. It does not model option pool refreshes, liquidation preferences, anti-dilution clauses, SAFEs, convertible notes, board rights, legal fees, or post-closing adjustments that can change the final ownership picture.

That limitation is important because a term sheet can look straightforward on paper while the actual dilution outcome shifts once the full financing stack is applied. Use the result as a starting point for diligence, not the end of the analysis.

Further reading

Frequently asked questions

What is the difference between pre-money and post-money valuation?

Pre-money valuation is the company value before the new money goes in. Post-money valuation is the company value after the new investment is added.

How do you calculate investor ownership?

Divide the new investment by the post-money valuation. That gives the investor's percentage of the company after the round closes.

How do you calculate founder ownership after the round?

Divide the pre-money valuation by the post-money valuation, or subtract investor ownership from 100 percent in a simple priced round with no extra dilution items.

Is this the same as a startup valuation calculator?

Yes, for many searchers it is. The startup valuation calculator intent usually means a simple priced-round model that shows pre-money, post-money, and ownership percentages.

Does this include option pools?

No. Option pools can change founder dilution and investor ownership, so a real financing model may differ from this simplified calculator.

Why can SAFEs or convertible notes change the math?

Because those instruments can convert into equity later and shift the cap table after the priced round. A post-money SAFE in particular can lock in dilution in a way that founders should check carefully.

What does the post-money / pre-money multiple mean?

It shows how large the round is relative to the original valuation. A 1.20x multiple means the company is valued 20 percent higher after the investment is added.

Does a higher pre-money valuation always mean less dilution?

Usually yes, if the investment amount stays the same. A higher pre-money valuation raises the post-money valuation and reduces the investor's ownership percentage.

Can I use this for bridge rounds?

Only as a rough estimate. Bridge financing often includes additional rights, discounts, or conversion terms that a simple pre-money and post-money calculator does not model.

What should I check in a term sheet before trusting the number?

Check whether the round is quoted on a pre-money or post-money basis, whether an option pool is included, whether any SAFEs or convertibles are converting, and whether there are special rights or fees that change ownership.

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