How Much Equity Will You Lose in Your Next Round?
Enter your current shares, new shares being issued, and pre-money valuation. Instantly see your ownership percentage before and after, dilution amount, new share price, and post-money valuation. Model multiple rounds to see cumulative dilution.
Equity Dilution Calculator
Enter the number of shares you personally hold before any dilution events.
Why dilution happens
Every time a company issues new shares - for investor funding, employee options, acquisitions, or convertible notes converting - existing shareholders own a smaller percentage of the same company. Your share count stays constant but the total pool grows, which shrinks your slice.
Dilution is not always bad
If each round is raised at a higher valuation, your percentage stake is smaller but the absolute value of your shares can be much higher. Owning 10% of a $100M company is worth more than owning 40% of a $5M company. The key question is whether each round adds more value than it takes in equity.
Option pool shuffle
Investors often require an unallocated option pool of 10-20% to be in place before they invest. If this pool is priced into the pre-money valuation, founders bear the full dilution cost. Always negotiate whether the pool goes pre-money or post-money - it can make a significant difference to your effective dilution.