Equity Dilution Calculator
Where the option pool sits changes everything.
Your ownership after
72%
from 100%
A pre-money option pool dilutes only existing shareholders, so the 10% pool costs you 10% before the investor's share is even applied. Whether the pool sits pre- or post-money is one of the most consequential terms in any round.
How the Equity Dilution Calculator works
A pre-money option pool dilutes only the existing shareholders, so it costs the founders before the investor's share is even applied. Whether the pool sits pre- or post-money is one of the most consequential terms in any round and one of the least discussed.
Also known as: share dilution calculator · ownership after funding round · cap table dilution
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is dilution calculated?
The investment divided by the post-money valuation gives the investor's share. Everyone else is diluted by that proportion, applied after any option pool adjustment.
What is the option pool shuffle?
Creating the option pool from the pre-money valuation, so existing shareholders bear all of it. It is standard practice and worth negotiating, because the effect is larger than most founders expect.
What is the difference between pre and post money?
Pre-money is the valuation before the investment; post-money adds the investment. A £2m pre-money with a £500,000 raise is a £2.5m post-money, and the investor owns 20%.
Is dilution bad?
Only relative to what it buys. A smaller share of a much larger business is worth more, which is the entire premise of raising capital.