Post Money Valuation Calculator
Work out what a funding round implies. Enter the investment in dollars and either the pre-money valuation or the equity percentage sold — the calculator returns the post-money valuation, the pre-money value, and the investor's ownership stake.
Example: with What do you know? Investment + pre-money valuation · Investment amount ($) 2000000 · Pre-money valuation ($) — used in mode 1 8000000 · Equity sold (%) — used in mode 2 20 → Post-money valuation: $10,000,000.
- Pre-money valuation$8,000,000
- Investor ownership20.0% of the company after the round
Computed by the calculator below using its default values. Change any input to see your own numbers.
Post-money = pre-money + investment, and investor ownership = investment ÷ post-money. Given an equity %, post-money = investment ÷ that %.
Pre-money, post-money, and what the investor owns
Post-money valuation is simply the pre-money valuation plus the new cash: raise $2M on an $8M pre-money and the company is worth $10M post-money. The investor's stake is their money over that post-money total — $2M ÷ $10M = 20%. The order matters because the new cash sits inside the company the moment the round closes; pricing the round 'pre' or 'post' changes who absorbs the dilution.
The same algebra runs backward. If a term sheet offers $500K for 10%, the implied post-money is $500K ÷ 0.10 = $5M, and the implied pre-money is $4.5M. This is the arithmetic behind every pitch-show negotiation: cutting the equity ask from 10% to 5% at the same check size doubles the implied valuation.
Why founders track post-money
SAFEs and priced rounds increasingly quote post-money caps precisely because the ownership math is clean: investment ÷ post-money is the investor's percentage, full stop. Existing shareholders are diluted proportionally — a founder holding 60% before a round that sells 20% holds 48% after (60% × 0.8). Option pools carved out pre-money also come out of the founders' side, a detail worth modeling before you sign.
How it’s calculated
Mode 1: post-money = pre-money + investment; ownership = investment ÷ post-money × 100. Mode 2: post-money = investment ÷ (equity % ÷ 100); pre-money = post-money − investment. Ownership shown to 0.1%.
Single-round math on a fully-diluted basis with no option-pool top-up, convertible notes, or pro-rata rights — real cap tables add those layers.
$2M raised at different pre-money valuations
| Pre-money | Post-money | Investor owns |
|---|---|---|
| $4M | $6M | 33.3% |
| $6M | $8M | 25.0% |
| $8M | $10M | 20.0% |
| $10M | $12M | 16.7% |
| $15M | $17M | 11.8% |
Computed with ownership = investment ÷ (pre-money + investment); rounded to 0.1%.
Common mistakes
- Dividing the investment by the pre-money valuation — ownership comes from the post-money total, so $2M on $8M pre is 20%, not 25%.
- Confusing which number a term sheet quotes: 'a $10M cap' on a post-money SAFE and on a pre-money SAFE imply different dilution.
- Ignoring the option pool: a pool expanded before the round comes out of existing shareholders, lowering the effective pre-money.
- Adding multiple SAFEs without stacking their dilution — each converts against the same post-money base.
Frequently asked questions
What is the post-money valuation formula?
Post-money = pre-money valuation + investment amount. Investor ownership = investment ÷ post-money × 100. A $2M check on an $8M pre-money gives a $10M post-money and a 20% stake.
How do I get valuation from an equity percentage?
Divide the investment by the fraction sold: $500K for 10% implies a $5M post-money valuation ($500K ÷ 0.10) and a $4.5M pre-money.
What is the difference between pre-money and post-money?
Pre-money is the company's agreed value before the new cash; post-money is that value plus the investment. Ownership percentages are always computed against post-money.
Does this show founder dilution?
Indirectly. If the round sells 20%, every existing holder keeps 80% of their prior stake — 50% becomes 40%. Option-pool increases and converting SAFEs add further dilution this simple model does not include.