Equity Dilution Calculator
See how each funding round dilutes founder ownership and understand your stake after multiple rounds of investment.
Dilution Breakdown
| Round | Raised | Post-Money | Ownership After | Dilution |
|---|---|---|---|---|
| Starting | - | - | 100.0% | - |
| Pre-Seed | $500,000 | $3,500,000 | 85.7% | -14.3% |
| Seed | $2,000,000 | $12,000,000 | 71.4% | -14.3% |
Final founder ownership: 71.4%
What is this?
Equity dilution occurs when a company issues new shares to investors, reducing existing shareholders' percentage ownership. While dilution decreases your percentage, it ideally increases the value of your remaining shares because the company is now worth more (the "post-money" valuation). Understanding dilution mechanics is critical for founders planning their fundraising strategy.
Why it matters
Many first-time founders are surprised by how quickly their ownership percentage drops after multiple funding rounds. By modeling dilution in advance, you can negotiate better terms, decide how much to raise in each round, and plan your option pool reserves. Investors also appreciate founders who demonstrate a clear understanding of cap table mechanics.
How to use this calculator
Enter your total founder shares (or use any number as a baseline). Then add each planned funding round with the investment amount and pre-money valuation. The calculator shows how your ownership percentage changes after each round. Try adjusting valuations to see how higher valuations reduce dilution. Tip: most founders retain 50-60% after seed, 30-40% after Series A.
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