In a priced funding round, the pre-money valuation is what the company is worth before the new money; the post-money adds the investment. Investors own the investment’s share of the post-money value, so existing shareholders are diluted by that percentage.
How to use the Pre- and Post-Money Valuation Calculator
- Investment
- Pre-money valuation
- Shares before the round (fully diluted)
- Every result field is editable: type into Investor equity and Pre-money valuation plus every other field update to match.
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the investment and the pre-money valuation (type the investor equity to work backwards), plus the existing shares.
Tips
- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.
Common mistakes to avoid
- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.
Inputs explained
| Field | What to enter |
|---|---|
| Investment | Amount in your currency |
| Pre-money valuation | Amount in your currency |
| Shares before the round (fully diluted) | A number |
What each result means
- Post-money valuation = [Pre-money valuation] + [Investment]
- Investor equity = [Investment]÷([Pre-money valuation] + [Investment])×100
- Price per share = [Pre-money valuation]÷[Shares before the round (fully diluted)]
- New shares issued = [Investment]÷[Price per share]
- Dilution of existing shareholders = [Investor equity]
Example values
How the main result changes when Pre-money valuation changes and everything else stays at the example values above:
| Pre-money valuation | Investor equity (%) |
|---|---|
| 4,000,000 | 33.33 |
| 6,000,000 | 25 |
| 8,000,000 | 20 |
| 10,000,000 | 16.67 |
| 12,000,000 | 14.29 |
| 16,000,000 | 11.11 |
Formula
Post-money valuation = pre-money valuation + investmentInvestor equity = investment ÷ post-money valuationPrice per share = pre-money valuation ÷ pre-money fully diluted sharesWorked example
Inputs — Investment: $2,000,000; Pre-money valuation: $8,000,000; Shares before the round (fully diluted): 10,000,000.
Results — Post-money valuation = $10,000,000.00; Investor equity = 20 %; Price per share = $0.8000; New shares issued = 2,500,000; Dilution of existing shareholders = 20 %.
Frequently asked questions
What is the difference between pre-money and post-money?
Pre-money excludes the new investment; post-money includes it.
How much equity does an investor get?
Investment ÷ post-money valuation.
Does a SAFE use pre- or post-money?
Standard SAFEs since 2018 use a post-money valuation cap.
What formula does the Pre- and Post-Money Valuation Calculator use?
Post-money valuation = pre-money valuation + investment.