Pre and Post-Money Valuation Calculator
Enter any two of the four core funding variables - pre-money valuation, investment amount, investor equity percentage, or post-money valuation - and the calculator solves for the others instantly. You also get founder dilution, price per share based on current shares outstanding, and a full equity ownership breakdown showing exactly who owns what after the round closes.
Formula
Worked example
A startup is valued at $4M pre-money and raises $1M. Post-money = $4M + $1M = $5M. Investor equity = $1M / $5M = 20%. If the founders also agree to a 10% option pool set aside pre-money, founder equity becomes 100% - 20% - 10% = 70%.
What are pre-money and post-money valuation?
Pre-money valuation is the agreed value of a company immediately before a new investment round closes. Post-money valuation is simply the pre-money valuation plus the new capital being invested. If an investor and founder agree the company is worth $4 million before the check is written, and the investor puts in $1 million, the company is worth $5 million post-money and the investor owns 20% ($1M / $5M). The distinction matters because it directly determines how much of the company the investor gets: a $1 million investment in a $4M pre-money company gives the investor 20%, while the same check in a $5M pre-money company gives only 16.7%.
How the option pool affects founder dilution
Investors frequently require founders to set aside an employee option pool before the round closes. This is described as a "pre-money" pool because it is carved out of the pre-money valuation, not from the new investor shares. In practice it means founders bear all the dilution from the pool, not the investor. For example, with a $4M pre-money valuation, a $1M investment and a 10% option pool: the investor takes 20% (as above), the pool takes 10%, and founders retain only 70% rather than the 80% they might have expected. Always model the option pool separately when comparing term sheets.
Reverse-solving: four ways to use this calculator
Most calculators only let you enter pre-money and investment. This tool solves in all four directions because different people know different facts: a founder reading a term sheet may know the post-money valuation and the investor equity percentage, while an investor may be working backward from a target ownership to set the investment size. Use the "Solve for" selector to choose the two values you want the calculator to compute, then enter the two you already know. All four combinations are supported: post-money and equity (given pre-money and investment), pre-money and post-money (given investment and equity), investment and equity (given pre-money and post-money), and pre-money and investment (given post-money and equity).
Price per share and how new shares are issued
When you know how many shares the company has outstanding before the round, you can compute the exact price per share. The price per share at closing is the pre-money valuation divided by the total pre-round shares outstanding. The number of new shares issued to the investor equals the investment divided by that share price. This matters for cap table management: if 10 million shares exist and the pre-money value is $4 million, each share is worth $0.40. A $1 million investment buys 2.5 million new shares at $0.40 each, bringing the total to 12.5 million shares, with the investor owning 2.5M/12.5M = 20%. Enable the "Calculate price per share" toggle to see this breakdown in the calculator.
Typical valuation ranges by funding stage (US market, 2024-2025)
| Stage | Typical pre-money valuation | Typical round size | Investor equity |
|---|---|---|---|
| Pre-seed | $500K - $3M | $100K - $500K | 5 - 15% |
| Seed | $2M - $10M | $500K - $3M | 15 - 25% |
| Series A | $10M - $50M | $5M - $20M | 20 - 35% |
| Series B | $40M - $150M | $20M - $60M | 15 - 30% |
| Series C+ | $150M+ | $50M+ | 10 - 25% |
Indicative ranges only. Actual valuations depend on sector, traction, team, and market conditions.
Frequently asked questions
What is the difference between pre-money and post-money valuation?
Pre-money valuation is what the company is worth before new investment arrives. Post-money valuation is that same value plus the new capital. If investors and founders agree on a $4 million pre-money valuation and the investor writes a $1 million check, the post-money valuation is $5 million. The difference is simply the investment amount.
How does pre-money valuation affect investor ownership?
Investor ownership equals the investment divided by the post-money valuation. A higher pre-money valuation means a higher post-money valuation for the same investment, so the investor gets a smaller percentage. A $1 million investment in a $4M pre-money company gives 20% ownership. The same investment in an $8M pre-money company gives only 11.1%. Founders should negotiate pre-money valuation carefully because it directly controls dilution.
What is a typical pre-money valuation for a seed-stage startup?
US seed-stage startups typically see pre-money valuations between $2 million and $10 million, though high-growth sectors (AI, biotech) can push much higher. Pre-seed rounds often come in below $3 million pre-money. Valuations vary significantly with team pedigree, traction, market size, and investor competition. The reference table in this calculator shows typical ranges by stage.
Why do investors insist on a pre-money option pool?
A pre-money option pool is required because investors want to own a set percentage of the company on a fully diluted basis after the round closes, without their own equity being diluted by future option grants. By requiring the pool to be created before the round (pre-money), they effectively shift the dilution cost to the founders. Founders should count the option pool as part of their dilution when evaluating a term sheet.
What does SAFE or convertible note do to pre-money valuation?
A SAFE (Simple Agreement for Future Equity) or convertible note delays the valuation conversation. The instrument converts into equity at a future priced round, often with a valuation cap and/or a discount rate. The cap sets the maximum effective pre-money valuation at which the SAFE converts, protecting the SAFE holder. When a priced round later sets the pre-money valuation above the cap, SAFE holders convert at the cap price and receive more shares per dollar than new investors.
How do I calculate price per share in a funding round?
Price per share = pre-money valuation / total shares outstanding before the round. If the pre-money valuation is $4 million and there are 10 million shares outstanding, each share is worth $0.40. The investor then receives investment / price per share new shares. Enable the "Calculate price per share" toggle in this calculator to see the full computation.
Can post-money valuation be lower than pre-money valuation?
No. Post-money valuation is always pre-money valuation plus the investment amount. Because investment is a positive number, post-money is always higher than pre-money for any conventional equity round. A lower post-money than pre-money would imply negative investment, which makes no economic sense in a standard equity raise.