Pre and Post Money Valuation Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Calculate pre-money valuation and post-money valuation from an investment amount and the investor ownership percentage offered in the round.
Pre and Post Money Valuation Calculator
Free online pre and post money valuation calculator to estimate startup valuation from the investment amount and the percentage of ownership given to investors in a funding round. This calculator is useful for startup founders, angel investors, venture capital analysts, finance students, and advisors who want a quick way to understand how a fundraising deal values a company before and after new money comes in. It is especially useful during seed rounds, angel rounds, SAFE or priced-round discussions, and early-stage negotiation planning.
This page works from a very common fundraising relationship. If an investor puts in a known amount of money and receives a known percentage of the business after the round, you can back into the implied post-money valuation. Once post-money valuation is known, pre-money valuation is simply the value of the company before the new cash was added. This makes the calculator helpful for checking whether a proposed deal feels high, low, or reasonable compared with market expectations, traction, revenue, team quality, or comparable companies.
The formula of pre and post money valuation
Post-money valuation = Investment amount / (Investor ownership percentage / 100)
Pre-money valuation = Post-money valuation – Investment amount
Founder ownership after round = 100% – Investor ownership percentage
Value per 1% equity = Post-money valuation / 100
Here investment amount means the cash invested in the round, investor ownership percentage means the percentage of the company the new investor will own after the investment closes, post-money valuation means the total company value immediately after the new cash is included, and pre-money valuation means the company value immediately before that investment was added.
Solved Example
Example 1: Find the pre-money and post-money valuation if an investor puts in $500,000 for 20% ownership.
Solve: Post-money valuation = 500000 / (20 / 100) = 500000 / 0.20 = $2,500,000
Pre-money valuation = 2500000 – 500000 = $2,000,000
Founder ownership after round = 100% – 20% = 80%
Value per 1% equity = 2500000 / 100 = $25,000
Example 2: Find the result if the investment amount is $750,000 and the investor receives 15% ownership.
Solve: Post-money valuation = 750000 / 0.15 = $5,000,000
Pre-money valuation = 5000000 – 750000 = $4,250,000
Founder ownership after round = 100% – 15% = 85%
Value per 1% equity = 5000000 / 100 = $50,000
Example 3: Find the result if a startup raises $1,200,000 for 25% ownership.
Solve: Post-money valuation = 1200000 / 0.25 = $4,800,000
Pre-money valuation = 4800000 – 1200000 = $3,600,000
Founder ownership after round = 100% – 25% = 75%
Value per 1% equity = 4800000 / 100 = $48,000
Table of pre and post money valuation calculator
| Investment Amount | Investor Ownership | Post-money Valuation | Pre-money Valuation | Founder Ownership After Round |
|---|---|---|---|---|
| $250,000 | 10% | $2,500,000 | $2,250,000 | 90% |
| $500,000 | 20% | $2,500,000 | $2,000,000 | 80% |
| $750,000 | 15% | $5,000,000 | $4,250,000 | 85% |
| $1,200,000 | 25% | $4,800,000 | $3,600,000 | 75% |
How to use this pre and post money valuation calculator
Enter the investment amount in the proper input field. After that, enter the investor ownership percentage being offered in the funding round. Then click the calculate button. The calculator will show the pre-money valuation, post-money valuation, founder ownership after the round, and the implied value of each 1% equity slice in the result box.
This calculator is useful when you want to compare offers from different investors or test how changing the offered ownership percentage changes valuation. If an investor asks for more ownership at the same investment amount, the implied post-money valuation falls. If an investor accepts less ownership for the same check size, the implied post-money valuation rises. That is why this simple calculator is helpful in negotiation preparation, cap-table discussions, and early valuation planning.
When using the result, remember that valuation is not the same as price certainty. Real fundraising deals may include option pools, liquidation preferences, notes, SAFEs, milestones, board rights, pro-rata rights, and future dilution that are not shown in this simple model. Even so, pre-money and post-money valuation remain two of the clearest numbers in startup finance. This calculator gives a fast numerical view that helps founders and investors understand deal structure before moving to more detailed cap-table modeling.