Investor Return Calculator
Work out the return multiple an investor makes on your deal, accounting for dilution in future rounds.
Investor return multiple
7.0x
Investor proceeds at exit
$3,500,000
Profit over investment
$3,000,000
Proceeds = exit value × ownership × (1 − future dilution). The multiple is proceeds ÷ investment. This is the number a venture investor compares against their fund model, which typically needs a 10x+ target on early deals to make up for the ones that fail.
Educational estimate, not legal or financial advice.
How it works
See your investor's return in 3 steps
Enter the investment amount and the ownership the investor gets.
Enter the dilution you expect in future rounds (30% to 50% is common).
Enter a realistic exit value and see the investor's return multiple.
Worked example
$500K for 10% at a $50M exit
Inputs
- Investment
- $500,000
- Ownership
- 10%
- Future dilution
- 30%
- Exit
- $50,000,000
Result
- Proceeds
- $3,500,000
- Return
- 7.0x
To reach a 10x return, this deal needs about a $71.4M exit.
How we got there
An investor puts in $500,000 for 10% of your company. After 30% dilution in future rounds, they own 7%. If the company sells for $50,000,000, they receive $3,500,000, a 7x return. To reach 10x, the company would need to sell for about $71,400,000.
Reading your result
Will your deal excite a VC?
Good sign
A realistic path to 10x or more.
Red flag
A best-case exit that still returns under 3x.
Early-stage investors need every deal to have a real chance of returning 10x or more, because most of their investments fail. If your realistic exit only returns 2x or 3x, a venture investor may pass even if the business is good.
Use this to shape your exit story and choose the right investors. If the multiple is low, angels or non-dilutive funding may fit your business better than venture capital.
FAQ
Investor return questions
Many aim for 10x or more on early-stage deals, so that a few big wins cover the companies that fail.
The money an investor gets back at exit divided by the amount they invested.
Later rounds shrink an early investor's stake too, unless they keep investing to hold their share.
A realistic one, based on recent acquisitions of similar companies in your sector, not your best case.
It may mean you should raise less, accept a lower valuation, or look at funding that does not need a huge exit.