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Pre-Money / Post-Money Valuation Calculator

Updated April 17, 2026 · Investing · Educational use only ·

Startup valuation arithmetic.

Calculate pre-money valuation, dilution, and price per share for VC deals. Enter investment amount and post-money valuation for an instant result.

What this tool does

This tool calculates pre-money valuation, ownership %, dilution, and price per share for venture rounds.


Enter Values

Formula Used
Pre-money valuation
Post-money valuation
Investment amount

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Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Pre-money/post-money valuation calculator computes the core arithmetic of every venture capital deal. Pre-money valuation = company value before investment. Post-money valuation = pre-money + investment. Investor ownership % = investment / post-money. Founder dilution = same as investor ownership.

Example: founders raise 2M at 10M post-money valuation. Pre-money = 8M. Investor gets 2M / 10M = 20% ownership. Founders diluted from 100% to 80%. If founders held 1M shares pre-round, price per share = 8M / 1M = 8. Investor receives 250,000 new shares (2M / 8).

Watch for valuation games: 'we raised at 10M valuation' could mean either pre or post. Pre-money is the headline founders prefer (sounds bigger). Post-money is what investors track. Always clarify which. Down rounds (post-money lower than previous post-money) trigger anti-dilution provisions, often punishing founders heavily through ratchet adjustments.

Run it with sensible defaults

Using investment amount of 2,000,000, post-money valuation of 10,000,000, founder shares pre-round of 1,000,000, the calculation works out to 8,000,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Investment Amount, Post-Money Valuation, and Founder Shares Pre-Round — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

Pre-money = post-money - investment. Investor % = investment / post-money. Price per share = pre-money / founder shares pre-round. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

Why investors run this

Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.

Example Scenario

£2,000,000 £ at £10,000,000 £ post-money on 1,000,000 shares = $8,000,000.00.

Inputs

Investment Amount:2,000,000 £
Post-Money Valuation:10,000,000 £
Founder Shares Pre-Round:1,000,000
Expected Result$8,000,000.00

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

Pre-money = post-money - investment. Investor % = investment / post-money. Price per share = pre-money / founder shares pre-round.

Frequently Asked Questions

Pre-money or post-money?
Always clarify in term sheets and conversations. 2M at '10M valuation' could be: (a) pre-money, so investor gets 16.7% (2M/12M), or (b) post-money, so investor gets 20% (2M/10M). Founders prefer pre-money framing (sounds bigger). Investors track post-money. The difference matters: at scale it's millions of units.
What's a fair valuation?
Early-stage SaaS: 5-10x ARR if growing 100%+ year-over-year. Pre-revenue: depends on team, traction, market. Comparable transactions are best benchmark. Investors won't pay above what comparable companies just raised. Down rounds are punishing - try to raise at flat-or-up vs prior round.
Anti-dilution protection?
Investor protection if next round price is lower than current. Two types: (1) Full ratchet - new investor price applies retroactively (very harsh on founders), (2) Weighted average - blends old and new prices (industry standard). Always negotiate weighted average broad-based - the most founder-friendly version.
Option pool impact?
Option pool 'top-up' usually comes from pre-money (founders dilute, not investors). 10% option pool top-up at 10M post-money: 1M of pre-money becomes options, founders dilute extra 10%. Investors require this before round closes. Negotiate option pool size carefully - can be 5-15% of post-money depending on stage.

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