Equity Dilution Calculator
Ownership after a funding round.
Enter your values
ⓘ Live results
Results
- Ownership after round
- 10.8%
- Before option pool
- 12%
- Dilution suffered
- 4.2%
- Post-money valuation
- $10,000,000.00
- Value of your stake
- $1,080,000.00
Quick answer
New shares issued to investors dilute existing holders proportionally, though value can still rise if the valuation grows.
New % = Old % × (Pre ÷ Post money)
How to use the Equity Dilution Calculator
- 1Enter your current ownership percentage.
- 2Enter the pre-money valuation and raise amount.
- 3Add any new option pool created at close.
Worked example
Using the values the calculator loads with:
Inputs
- Your ownership15 %
- Pre-money valuation8000000 $
- Amount raised2000000 $
- New option pool10 %
Results
- Ownership after round10.8%
- Before option pool12%
- Dilution suffered4.2%
- Post-money valuation$10,000,000.00
- Value of your stake$1,080,000.00
Frequently asked questions
Is dilution always bad?
No — a smaller slice of a much larger pie is usually worth more.
Who pays for the option pool?
Usually existing shareholders, because it is created pre-money.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.