Free Startup Dilution Calculator
Dilution Calculator
See exactly how a funding round dilutes every stakeholder — with sensitivity analysis.
Like this tool? Create a free account to save your work and connect it to your books.
See exactly how a funding round dilutes every stakeholder in your company. Enter your current shareholders, set the round terms, and instantly see before-and-after ownership percentages, dilution impact, and a visual comparison. Model option pool expansion and run sensitivity analysis at different valuations.
How to Calculate Equity Dilution
- 1
Add current shareholders
Enter each stakeholder's name and their current share count or ownership percentage.
- 2
Set round terms
Enter the pre-money valuation and new investment amount for the funding round.
- 3
Set option pool expansion
Specify the target option pool as a percentage of post-money shares (if expanding).
- 4
Calculate dilution
See per-stakeholder before/after ownership, dilution percentage, and visual comparison.
- 5
Run sensitivity analysis
View dilution at ±20% valuation to understand how valuation impacts ownership.
Why Use This Dilution Calculator?
Per-stakeholder detail
See exactly how each founder, investor, and option pool is affected — not just an aggregate number.
Visual before/after
Side-by-side stacked bar charts make dilution impact immediately clear.
Sensitivity analysis
See how ±10% and ±20% valuation changes affect dilution for every stakeholder.
Option pool modeling
Model option pool expansion before the round and see its pre-dilution effect.
Frequently Asked Questions
What is equity dilution?
Equity dilution occurs when a company issues new shares, reducing existing shareholders' ownership percentages. Your share count stays the same, but each share represents a smaller piece of the company.
Is dilution always bad?
Not necessarily. Dilution reduces your ownership percentage, but if the funding increases the company's value by more than the dilution, your shares are worth more in absolute terms. Owning 30% of a $50M company is better than owning 50% of a $10M company.
How much dilution is normal per round?
Seed rounds typically dilute founders 15-25%. Series A rounds typically dilute 20-30%. The exact amount depends on valuation, investment size, and option pool expansion.
What is option pool shuffle?
Option pool shuffle (or option pool expansion before a round) dilutes existing shareholders before new investors come in. Investors often require a 10-20% option pool on a post-money basis, which effectively reduces the founders' pre-money ownership.
Like this tool? Create a free account to save your work.
Your data saves across all 41 tools. Enter your business info once — it's in every invoice, every report, every receipt. Free forever, no credit card.
Create Free Account →