Dilution Calculator for Startups
Simulate the dilution of your stake after an investment round. Visualize your cap table before and after raising capital.
What is this calculator for?
If you're going to raise capital for your startup, you need to understand what it means in terms of dilution. This calculator lets you simulate how the share capital is redistributed after an investment round and what stake each partner will retain.
We show you the before and after. No complex formulas or endless Excel sheets. Just the data that matters: post-money participation, dilution percentage per partner, and updated economic value.
Use it before sitting down with investors. It will give you clarity, strength to negotiate, and vision to decide. And if you want us to help you structure the round, you know where we are.
What can you calculate with this tool?
- 🔢 Post-money participation of each partner.
- 📉 Individual dilution percentage.
- 💶 Investor participation after the round.
- 📊 Comparative table before and after investment.
- 📈 Economic value of each stake after the round.
- 📎 Chart visualization of the new capital structure.
You can also prepare the system to simulate future rounds and track the impact of your growth strategy.
How does the calculator work?
You just need to enter the following data:
- Number of partners and shares of each one.
- Current share capital (amount).
- Pre-money valuation of the company.
- Amount of investment to be contributed.
With that, you'll automatically get the key results of the post-money cap table: how much each partner keeps, how much the investor gets, how much your share is worth now.
Additionally, you can export the results and use the table for presentations, negotiations, or internal decisions.
Practical example of dilution explained simply
Imagine your startup is formed by 3 partners. Before seeking investment, they have these stakes:
- Socio A: 40%
- Socio B: 40%
- Socio C: 20%
You receive an investment offer: an investor wants to put €500,000 into the company, valuing it at €2,000,000 before investment (this is called pre-money valuation).
When that money comes in, the investor will have 20% of the company (because 500,000 is 20% of €2,500,000 post-money). Current partners now split the remaining 80% among themselves, in the same proportion as before:
- Socio A: 32%
- Socio B: 32%
- Socio C: 16%
Although no one has lost shares, their percentage has been reduced. That's dilution. In return, they now have a stronger company, with capital to grow, and their stake (although smaller) is worth more.
This is how the new distribution looks:
| Participant | Before the round | After the round |
|---|---|---|
| Socio A | 40% | 32% |
| Socio B | 40% | 32% |
| Socio C | 20% | 16% |
| New investor | – | 20% |
Conclusion? Dilution isn't bad if you know what you're signing. The important thing is that the numbers are clear and the round is done thoughtfully. That's what we're here for.
Calculadora Interactiva
1.Datos de fundadores
2.Datos financieros de la empresa
¿Conoces la valoración pre-money?
3.ESOP (opcional)
💡 Instrucciones de uso
- • Introduce los nombres y participaciones iniciales de todos los socios fundadores
- • Rellena el capital social actual, la valoración pre-money y el monto de inversión
- • Activa el ESOP si planeas reservar un porcentaje para empleados (10-20% es típico)
- • La tabla mostrará automáticamente los porcentajes pre-money, post-money y fully diluted
- • También verás el valor económico de cada participación y el nivel de dilución por socio
Do you want help structuring your round properly?
This tool is the first step. But if you're going to raise capital for real, you need a well-thought shareholders' agreement, solid documents, and a legal strategy aligned with your growth.
At Satya Legal we help you structure your round sensibly. We protect your startup and negotiate with you, not against you.
Frequently asked questions about dilution and rounds
What is dilution after a round?
Dilution is the reduction in percentage that each partner has when new shares are issued for an investor. It's normal and part of the game, but it needs to be understood and managed.
How can I reduce dilution?
By negotiating the valuation well, structuring the round sensibly, and ensuring your cap table is optimized. And, of course, with good legal advice.
Can I use this calculator if there are multiple investors?
Yes. Simply group the total capital they're going to contribute. For more complex scenarios, you can contact us and we'll simulate the scenario with you.