Pre-Money vs Post-Money Calculator
Turn any valuation into the exact ownership you are selling, in one step.
Your round at a glance
- Pre-money valuation
- $8,000,000
- Post-money valuation
- $10,000,000
- Investor owns
- 20.0%
- Founders keep
- 80.0%
Investor ownership = amount raised ÷ post-money valuation. Price per share uses the pre-money valuation divided by existing shares. Ignores the option pool and any new shares created in the round.
Educational estimate, not legal or financial advice.
How it works
Turn any offer into ownership in 3 steps
Enter how much you are raising.
Enter the pre-money valuation you were offered.
Add your current number of shares to see the price per share.
Worked example
$1M raised at a $4M pre-money valuation
Inputs
- Pre-money
- $4,000,000
- Amount raised
- $1,000,000
- Existing shares
- 4,000,000
Result
- Post-money
- $5,000,000
- Investor owns
- 20%
- Price per share
- $1.00
A "$5M valuation" costs you 20% if it is post-money, but only 16.7% if it is pre-money.
How we got there
You raise $1,000,000 at a $4,000,000 pre-money valuation. The post-money valuation is $5,000,000, so the investor owns 20% and existing shareholders keep 80%. If you have 4,000,000 shares today, the price is $1.00 per share and the investor receives 1,000,000 new shares.
Reading your result
What your ownership number tells you
Good sign
You have the offer in writing as pre-money or post-money, including the option pool.
Red flag
Comparing two offers before converting both to post-money ownership.
Post-money valuation is the pre-money valuation plus the money raised. The investor's ownership is always the investment divided by the post-money valuation, so the same headline number can mean very different deals.
A "$5 million valuation" costs you 20% if it is post-money, but only about 16.7% if it is pre-money. Always ask which one an investor means before you compare offers.
FAQ
Pre-money vs post-money questions
The value of your company just before the new investment comes in.
The value right after the investment: pre-money plus the amount raised.
It varies. SAFEs usually use a post-money cap, while priced rounds are often discussed pre-money. Always confirm in writing.
Yes. If the investor asks for a new option pool inside the pre-money valuation, your real pre-money valuation is lower. Use the option pool calculator to see the effect.
Pre-money valuation divided by the number of shares that exist before the round.