Five funding calculations every founder should know
The figures are illustrative and simplify real deals. Change any number to try your own. Jump to the calculator to try it with your own numbers.
Section 9 of 10
The five calculations
The figures are illustrative and simplify real deals. Change any number to try your own.
Calculation 1
Equity offered
Pre-money £750,000 + investment £250,000 = post-money £1,000,000. Investor ownership = £250,000 ÷ £1,000,000 = 25%.
What Equity meansCalculation 2
Revenue growth
Revenue grows from £100,000 to £150,000. Growth = (£150,000 − £100,000) ÷ £100,000 × 100 = 50% year on year.
What YoY meansCalculation 3
Net monthly burn
Monthly spending £20,000 − monthly receipts £12,000 = £8,000 net burn.
What Burn rate meansCalculation 4
Runway
Cash £96,000 ÷ net monthly burn £8,000 = 12 months.
What Runway meansCalculation 5
Customer acquisition cost
Acquisition spend £10,000 ÷ 50 new customers = £200 CAC.
What CAC means
Try it with your numbers
Your fundraising snapshot
All five calculations with your own figures, each with its working, and a summary you can copy into a deck or an email.
Your snapshot
- Equity offered25.0%
£250,000 ÷ (£750,000 + £250,000) = £250,000 ÷ £1,000,000
- Revenue growth50.0%
(£150,000 − £100,000) ÷ £100,000 × 100
- Net monthly burn£8,000
£20,000 spent − £12,000 received
- Runway12 months
£96,000 ÷ £8,000 a month
- Customer acquisition cost£200.00
£10,000 ÷ 50 new customers
Last checked . Estimates only, not financial, tax or legal advice: deal terms vary, so check your documents and take advice before you sign. More terms in the startup glossary.