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.

The five calculations

The figures are illustrative and simplify real deals. Change any number to try your own.

  1. 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 means
  2. Calculation 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 means
  3. Calculation 3

    Net monthly burn

    Monthly spending £20,000 − monthly receipts £12,000 = £8,000 net burn.

    What Burn rate means
  4. Calculation 4

    Runway

    Cash £96,000 ÷ net monthly burn £8,000 = 12 months.

    What Runway means
  5. Calculation 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 numbers

Change anything and the results update straight away.

The round

Revenue

Cash

Customers

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.

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