Pre-Money Valuation Calculator

Calculator input

Scenario name

Investment amount

Equity sold (%)

Current shares outstanding

Option pool shares

Convertible notes

Outstanding debt

Cash balance

ARR or annual revenue

Revenue multiple

Example data table

Use this sample scenario to understand how pre-money valuation changes with ownership and financing assumptions.

Scenario	Investment	Equity Sold	Pre-Money	Post-Money	Price/Share
Seed Round A	$500,000	20%	$2,000,000	$2,500,000	$0.91
Angel Round B	$300,000	15%	$1,700,000	$2,000,000	$0.77
Series A Prep	$1,200,000	18%	$5,466,666.67	$6,666,666.67	$2.28

Formula used

Post-money valuation
Post-money = Investment Amount ÷ Equity Sold

Pre-money valuation
Pre-money = Post-money − Investment Amount

Fully diluted pre-round shares
Fully Diluted Shares = Current Shares + Option Pool Shares

Implied price per share
Price Per Share = Pre-money ÷ Fully Diluted Shares

New investor shares
New Shares = Investment Amount ÷ Price Per Share

Net adjusted equity value
Adjusted Equity = Pre-money + Cash − Debt − Convertible Notes

The main headline figure is pre-money valuation. The added metrics help you test dilution, financing structure, and balance sheet adjustments before discussing terms.

How to use this calculator

Enter the cash investment expected from the investor.
Type the ownership percentage being sold in the round.
Add current shares and option pool shares for dilution context.
Include notes, debt, and cash to view adjusted value.
Optionally add annual revenue and a valuation multiple.
Click Calculate valuation to show outputs above the form.
Review the graph, summary cards, and scenario comparisons.
Export the result as CSV or PDF when needed.

FAQs

1. What is pre-money valuation?

Pre-money valuation is the company value immediately before new capital enters. Investors use it to decide pricing, ownership percentage, and negotiating range for a financing round.

2. How is pre-money different from post-money?

Pre-money excludes the new investment. Post-money includes it. The relationship is simple: post-money equals pre-money plus the investment amount contributed in the round.

3. Why does equity sold matter so much?

A small change in equity sold can move valuation sharply. Selling 15% versus 20% for the same investment produces a much higher pre-money figure.

4. Why include option pool shares?

Option pool shares affect dilution and the implied price per share. Investors often review fully diluted ownership, not only currently issued shares.

5. Should debt and notes change valuation discussions?

Yes. Debt and convertible instruments can reduce effective equity value or alter dilution later. Cash on hand can support a stronger adjusted view.

6. What does price per share tell me?

It converts the headline valuation into a per-share figure. This helps model investor share issuance, founder dilution, and scenario comparisons across rounds.

7. Why compare valuation with a revenue multiple?

Revenue multiples provide a market-based checkpoint. They do not replace negotiated round pricing, but they help test whether a valuation seems aggressive or conservative.

8. Can this calculator replace legal or investment advice?

No. It is a decision-support tool. Final financing terms should be reviewed with legal counsel, founders, investors, and qualified finance professionals.