Pre-Money and Post-Money Valuation Calculator
Enter the pre-money valuation and investment amount to instantly see the post-money valuation, how much equity the investor receives, and — if you supply the current share count — the implied price per share and new shares issued.
Pre-money + investment amount
16.7%
investorInvestor
16.7%
Existing shareholders
83.3%
- 1
Investment added
1,000,000New capital being added to the pre-money valuation. - 2
Post-money valuation
5,000,000 + 1,000,000 = 6,000,000
How does this calculator work?
Post-money valuation = pre-money + investment. Investor equity = investment ÷ post-money. Existing shareholders retain (pre-money ÷ post-money) of the company. If shares are supplied, the implied price per share = pre-money ÷ existing shares, and new shares issued = investment ÷ price per share.
Formula
How this is calculated
A funding round starts with the pre-money valuation: the agreed value of the company before new cash arrives. Adding the investment gives the post-money valuation — what the company is worth on paper right after the round closes. The investor's ownership stake is simply their cheque divided by the post-money figure, which means their equity percentage is always strictly less than 100%, and founding shareholders retain the complement.
If you enter the number of shares outstanding before the round, the calculator derives the implied price per share (pre-money valuation ÷ existing shares). It then works out how many new shares must be issued at that price to raise the investment amount (investment ÷ price per share), and adds them to the existing count to show the total post-round capitalisation.
These are pure mathematical relationships. Real term sheets involve liquidation preferences, option pools (which are typically carved out of the pre-money), anti-dilution provisions, and other terms that change the effective economics. Always review a term sheet with a lawyer and financial adviser. Pre-money and post-money figures are negotiated estimates, not audited values.
Frequently asked questions
Pre-money valuation is the agreed worth of a company before new capital is added. Post-money is the same figure plus the investment amount. If a company is valued at $5 million pre-money and raises $1 million, the post-money valuation is $6 million and the investor owns $1M / $6M ≈ 16.7%.
Yes. Investors often require a new employee option pool to be created before the round closes (carved out of the pre-money), which dilutes founders but not the incoming investor. This reduces the effective pre-money valuation for founders. This calculator uses the headline pre-money figure; option-pool shuffles must be modelled separately.
Seed rounds commonly target 10–25% dilution, though this varies widely by region, sector and founder negotiating position. The post-money valuation implied by a $500 K investment for 20% is $2.5 million post-money ($2 million pre-money).
Also known as
TG we-Calculate Editorial Team. (2026). Pre-Money and Post-Money Valuation Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/pre-and-post-money-valuation-calculator
TG we-Calculate Editorial Team. "Pre-Money and Post-Money Valuation Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/pre-and-post-money-valuation-calculator.
TG we-Calculate Editorial Team, "Pre-Money and Post-Money Valuation Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/pre-and-post-money-valuation-calculator
@misc{wecalculate_pre_and_post_money_valuation_calculator, title = {Pre-Money and Post-Money Valuation Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/pre-and-post-money-valuation-calculator}}, year = {2026}, note = {TG we-Calculate} }
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