I know the investment amount and the % the investor will own after the round—how do I back into the pre-money valuation?

Use post-money = investment ÷ (ownership% / 100), then pre-money = post-money − investment.

What “ownership after the round” % should I enter—before or after the option pool?

Enter the investor’s post-round, fully diluted ownership. If the option pool is being increased “pre-money,” your effective founder pre-money is lower than the headline number—model the option pool separately.

Why does my pre-money look “too high” compared to what we discussed on the term sheet?

You’re likely mixing definitions (headline vs effective pre-money) or ignoring dilution items (option pool top-up, SAFEs/convertibles). This calculator assumes a simple priced equity round with a single post-money ownership %.

How do I calculate the post-money valuation from a target ownership percentage?

Post-money valuation = investment amount ÷ (ownership% / 100). The investor’s % is implied by how much of the post-money they’re buying.

Pre-Money & Post-Money Valuation Calculator (Investment → Ownership % → Valuation)

Pre-Money Valuation Calculator

Compute the pre-money and post-money equity valuation for a funding round based on the new investment amount and the investor's ownership after the round. Clean, finance-grade UX with guardrails, scenarios, and a concise What It Means panel.

New investment amount

Investor ownership after the round

Results

Pre-money valuation $
Post-money valuation $

What is Pre-Money & Post-Money Valuation?

Pre-money valuation is the equity value of a company immediately before new capital is added in a financing.

Post-money valuation is the equity value immediately after the financing, equal to pre-money plus the new investment.

These definitions matter because ownership percentage, voting control, and equity dilution are all negotiated off a “pre” vs “post” framing—often on a fully diluted cap table that includes option pools and other potential shares.

Formula

Example

New investment amount: $5,000,000

Investor ownership after the round: 20%

1) Post-money valuation:

2) Pre-money valuation:

Result: Pre-money valuation = $20,000,000; Post-money valuation = $25,000,000.

How to Use the Pre-Money & Post Money Valuation Calculator

Enter the new investment amount and the investor’s target ownership after the round. The calculator instantly returns the implied post-money and pre-money valuations.

Enter the New Investment Amount
- Input the cash being invested in this round (e.g., 5,000,000).
Set Investor Ownership After the Round (%)
- Enter the investor’s post-round ownership percentage (on a fully diluted, post-money basis).
Review the Valuation Results
- - The tool calculates:
formula (plain text): Post-money valuation = Investment amount / (Ownership % / 100)
formula (plain text): Pre-money valuation = Post-money valuation − Investment amount
Check “What it means?” for Assumptions
- Confirm the definition and assumptions (simple equity round; ignores option pool top-ups, SAFEs, convertibles unless you model them separately).
Share, Reset, or Explore Scenarios/Charts
- Use Share/Embed to copy the result for docs; Reset to start over; optionally open Scenarios or charts if available for quick comparisons.

Frequently Asked Questions

Use post-money = investment ÷ (ownership% / 100), then pre-money = post-money − investment.
Enter the investor’s post-round, fully diluted ownership. If the option pool is being increased “pre-money,” your effective founder pre-money is lower than the headline number—model the option pool separately.
You’re likely mixing definitions (headline vs effective pre-money) or ignoring dilution items (option pool top-up, SAFEs/convertibles). This calculator assumes a simple priced equity round with a single post-money ownership %.
Post-money valuation = investment amount ÷ (ownership% / 100). The investor’s % is implied by how much of the post-money they’re buying.

Methodology & Sources

Bibliography

Shari Loessberg (2010). Early Stage Capital: Term Sheets 101 (15.391 Fall 2010) — MIT OpenCourseWare (Massachusetts Institute of Technology) https://ocw.mit.edu/courses/15-391-early-stage-capital-fall-2010/bdf01e1a1e44145d6365f232557b0e34_MIT15_391F10_lec02.pdf
Accessed 2025-12-22
Aswath Damodaran (2009). Valuing Young, Start-up and Growth Companies: Estimation Issues and Valuation Challenges — Stern School of Business, New York University https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/younggrowth.pdf
Accessed 2025-12-22
Will Gornall; Ilya A. Strebulaev (2017). Squaring Venture Capital Valuations with Reality — Stanford University (Stanford GSB / Stanford Law conferences) https://conferences.law.stanford.edu/vcs/wp-content/uploads/sites/11/2017/11/Squaring-Venture-Capital-Valuations-with-Reality.pdf
Accessed 2025-12-22

Pre-Money Valuation Calculator

Results

What It Means?

What is Pre-Money & Post-Money Valuation?

Formula

Example

How to Use the Pre-Money & Post Money Valuation Calculator

Enter the New Investment Amount

Set Investor Ownership After the Round (%)

Review the Valuation Results

Check “What it means?” for Assumptions

Share, Reset, or Explore Scenarios/Charts

Frequently Asked Questions

Methodology & Sources

Bibliography

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