Pre-Money vs Post-Money Valuation Calculator (With Dilution)
The difference between pre-money and post-money valuation, the formula, how a round dilutes founders, and a free calculator for ownership, price per share and new shares.
By Onward ScoutPublished 2 min read
Free tool · runs in your browser
Pre-money vs post-money valuation calculator
Enter how much you are raising and the pre-money valuation (if you only know the post-money, enter it minus the raise). See the post-money valuation, what investors own, your dilution and the share price.
Nothing you type here is uploaded or stored by Onward Scout; the tool runs entirely in your browser.
Pre-money valuation is what your company is worth before new investment; post-money valuation is pre-money plus the new money. Investors own their investment divided by the post-money valuation. The calculator above shows the post-money, investors' stake, your dilution, the share price and the new shares issued.
What is the difference between pre-money and post-money valuation?
In short
Post-money = pre-money + amount raised. If you raise $2M at an $8M pre-money valuation, the post-money is $10M and investors own 20%. Everyone who owned the company before the round is diluted by that same 20%.
The words matter in negotiations. "$10M" sounds the same whether it is pre or post, but a $2M raise at a $10M pre-money gives investors 16.7%, while at a $10M post-money they get 20%. Always say which one you mean, in writing.
How do you calculate ownership and dilution?
In short
Investors' share = raise ÷ (pre-money + raise). Your ownership after = your ownership before × (1 − investors' share). Price per share = pre-money ÷ fully diluted shares before the round; new shares = raise ÷ price per share.
| Raise | Pre-money | Post-money | Investors own | Founders at 85% keep |
|---|---|---|---|---|
| $1M | $8M | $9M | 11.1% | 75.6% |
| $2M | $8M | $10M | 20.0% | 68.0% |
| $3M | $8M | $11M | 27.3% | 61.8% |
How do SAFEs change the picture?
In short
Most early rounds now start on SAFEs, which convert into shares at the next priced round. With a post-money SAFE, the holder's stake is simply the amount divided by the cap, before the priced round dilutes everyone.
SAFEs dominate the earliest stage: on Carta, 90% of pre-seed rounds used SAFEs in the first quarter of 2025[Carta, Q1 2025], a record high, with convertible notes making up the rest. YC's own deal works the same way: an uncapped SAFE that converts at a $15M post-money cap equals 2.5% of the company for $375,000 invested[Y Combinator deal]. To include SAFEs and an option pool in one model, use the cap table calculator.
Should you optimize for the highest valuation?
In short
Not blindly. A high valuation raises the bar for your next round; missing it can mean a flat or down round that hurts more than a little extra dilution today. Optimize for the right investors and enough runway to hit the milestones the next round will judge.
Our view: decide how much money you need to reach the next real milestone, then find the valuation that lets you raise it with dilution you can live with. Read what a SAFE note is before you sign one, and when you are ready to pitch, start with the pitch deck builder. Investors read decks quickly; DocSend's data shows they spend less than 3 minutes reviewing a pitch deck[DocSend], so put the valuation logic where they will see it.
Frequently asked questions
What is the difference between pre-money and post-money valuation?
Pre-money is the company's value before new money comes in; post-money is pre-money plus the new money. Investors' ownership equals their investment divided by the post-money valuation.
Is a SAFE cap pre-money or post-money?
The standard YC SAFE has used a post-money valuation cap since 2018, which makes each SAFE holder's ownership easy to calculate: amount divided by cap.
How much dilution is normal in a seed round?
Many priced seed rounds sell around a fifth of the company, but it varies widely with the round size, valuation and sector. Model your own numbers rather than relying on a rule.
Why does the price per share use pre-money?
Because new shares are priced off the company's value before the investment: price per share equals pre-money valuation divided by pre-money fully diluted shares.
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