Equity calculator: how much of your company an investment costs
Equity is ownership of the company. In a priced round the investor's share is investment ÷ (pre-money + investment).
The formula
Equity = investment ÷ post-money valuation
Worked example: 20.0%
The example uses the guide's seed round, £200,000 for 20%, with a matching cap table, exit, fund and market.
- £200,000 ÷ (£800,000 + £200,000) = 20.0%
Try it with your numbers
Work out your equity
It starts on the example. Replace any figure with your own; nothing you type leaves your browser.
Your equity sold
20.0%
- £200,000 ÷ (£800,000 + £200,000) = 20.0%
- An option pool top-up inside the pre-money takes more from existing shareholders: see dilution.
Formula: Investment ÷ post-money valuation.
- Existing shareholders keep
- 80.0%
Everything your numbers show
27 of 27 worked out so far. Select one for its page.
- Valuation£1,000,000post-money
- Pre-money valuation£800,000
- Post-money valuation£1,000,000
- Equity20.0%Equity sold
- Dilution70.0%kept by existing shareholders, down from 100.0%
- Option pool142,857new pool shares
- Fully diluted60.0%Fully diluted ownership
- SAFE89,286shares
- Loan note96,429shares
- Pro rata rights£200,000Pro rata amount
- Liquidation preference£1,000,000to the investor
- Vesting180,000after 18 months
- Cliff120,000at month 12
- SEIS£10,000SEIS relief
- EIS£6,000EIS relief
- VCT£4,000VCT relief
- TAM£240,000,000a year
- SAM£60,000,000a year
- SOM£3,000,000a year
- Down roundDown round
- Up roundDown round
- Flat roundDown round
- MOIC2.80x
- IRR22.9%a year
- TVPI1.50x
- DPI0.40x
- Dry powder£24,000,000
How to read your result
The same money buys a smaller share at a higher valuation, which is why the valuation matters as much as the amount.
Watch out for
An option pool top-up and converting notes take more equity on top of the investor's share.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.