Pre-Money Post-Money Valuation Calculator

Core definitions: post-money valuation equals the value of the company immediately after the new capital is added. Pre-money equals post-money minus the new investment. Implied ownership equals the new investment divided by the post-money valuation.

Option-pool adjustment: many negotiations expand the option pool pre-money. A common way to report valuations is to adjust the pre-money valuation so that the target option pool exists on a fully diluted, pre-investment basis; this calculator follows that conventional adjustment for modeling purposes.

Practical limits and safety: calculations assume simple equity investments (no convertible instruments, liquidation preferences, or ratchets). For transactions with convertible notes, SAFE instruments, complex preference stacks, or jurisdictional tax treatment, consult legal and accounting advisors.

Choose the method that matches the terms you have (target ownership, known pre-money, or known post-money).

Use the option-pool adjustment when the term requires creating/expanding a pool before the investor's money, and remember this will dilute existing shareholders.

This tool provides indicative calculations for planning and negotiation; it is not a substitute for legal, tax, or accounting advice.

Example 1: Investor puts in 1,000,000 for 20 percent post-money. Post-money equals 1,000,000 divided by 0.20, or 5,000,000; pre-money equals 4,000,000.

Example 2: Company targets a 4,000,000 pre-money but must create a 10 percent option pool pre-round. Adjusted pre-money equals 4,000,000 divided by 0.90, or 4,444,444. After a 1,000,000 investment, post-money equals 5,444,444; investor ownership equals 1,000,000 divided by 5,444,444, or about 18.36 percent.