Free online equity dilution calculator to help founders calculate post-funding ownership dilution. Supports multiple funding rounds, ESOP option pools, convertible notes. | No Signup · Data Never Leaves Your Device
Zero Dependencies · Works OfflineFree online equity dilution calculator to help founders calculate post-funding ownership dilution. Supports multiple funding rounds, ESOP option pools, convertible notes.
Pre-Funding Simulation：Before meeting investors, simulate how different raise amounts and valuations affect ownership structure to determine your minimum acceptable valuation and maximum dilution tolerance.
Option Pool Planning：When planning ESOP size, calculate the dilution impact on all shareholders including co-founders and early employees to find the optimal balance.
Multi-Round Projection：Map out the full Seed→IPO funding path to project ownership percentages after each round, helping build a long-term fundraising strategy.
Equity dilution occurs when a company issues new shares during funding rounds, reducing existing shareholders' ownership percentage. For example, if founders start with 100% and raise 20% equity, they're left with 80%. While dilution reduces percentage, if company valuation grows fast enough, the dollar value of holdings may actually increase.
Plan reasonable round sizes and timing. Avoid raising too much too early. Keep ESOP at 10-20%. Target dilution per round at 15-25% max. Use convertible notes or SAFEs to delay equity dilution. Always focus on valuation growth to ensure post-dilution value increases.
An ESOP (Employee Stock Option Pool) is typically created before or alongside a funding round and further dilutes existing shareholders. If a 20% option pool is created pre-money and investors get 20%, founders are left with 64% (not 80%). This makes the option pool a key negotiation point for founders.
Anti-dilution provisions protect early investors from excessive dilution in a down round (lower valuation). Common types: full ratchet (adjusts to new price) and weighted average (adjusts by round size). Weighted average is more founder-friendly.
Typical path Seed→IPO: Seed 20% → Series A 20% → Series B 15% → Series C 10% → ESOP 15%, leaving founders with roughly 20-35%. Each round's dilution rate matters as much as valuation. This calculator supports multi-round simulation.