Pre-Money vs Post-Money Valuation Calculator
Calculate startup valuation and equity dilution after fundraising
Pre-Money Valuation Inputs
Enter your pre-money valuation and investment amount
Company value before investment
New capital being raised
Key Difference: Pre-money valuation is before the investment; post-money is after. Post-Money = Pre-Money + Investment. Investor ownership % = Investment ÷ Post-Money Valuation.
Understanding Pre-Money vs Post-Money
Pre-Money Valuation
- Definition: Company value BEFORE new investment
- Negotiated: Determined during fundraising negotiations
- Formula: Post-Money - Investment Amount
- Example: $4M pre-money + $1M investment = $5M post-money
Post-Money Valuation
- Definition: Company value AFTER new investment
- Calculation: Pre-Money + New Investment
- Ownership: Investment ÷ Post-Money = Investor %
- Example: $1M into $5M post-money = 20% ownership
Dilution Example
If a founder owns 100% pre-investment and raises $1M at a $4M pre-money valuation:
- • Post-money valuation = $5M ($4M + $1M)
- • Investor gets 20% equity ($1M ÷ $5M)
- • Founder diluted from 100% to 80%
- • Founder's stake now worth $4M (80% of $5M)