Startup Equity Dilution Calculator.

Raising capital is one of the most important and misunderstood steps in building a startup. Every time you bring in an investor, you’re exchanging a portion of your ownership for capital that helps your business grow.

This process is called equity dilution.

Many founders focus on how much money they are raising, but overlook how that decision affects:

• their long-term ownership
• control of the company
• future fundraising rounds

The Equity Dilution Calculator helps you quickly model how investment, valuation, and option pools impact your cap table, so you can make smarter, more strategic decisions before you enter negotiations.

Let’s say you are a founder with 100% ownership of your startup.

• Your company is valued at $5,000,000 (pre-money)
• You raise $1,000,000 from investors
• You create a 10% option pool for future hires

Here’s what happens:

• Your post-money valuation becomes $6,000,000
• The investor now owns ~16.7% of the company
• The option pool takes 10%
• Your ownership drops from 100% → ~73.3%

That means you have been diluted by 26.7%, even though you only raised $1M.

This is why understanding dilution early is critical, especially as you plan multiple funding rounds.