Equity Dilution Calculator
Model dilution across funding rounds.
See how cap table changes across pre-seed, seed and Series A — with option pool, SAFEs and founder retention.
7,621 calculations4.8 ratingUpdated June 2026
Your equity workbench
Visualize the cap table and tune every assumption — founder ownership updates instantly.
Interactive equity dilution calculator with live cap table donut visualization.
Cap Table
Ownership distribution
Founders
64.0%
Investors
20.0%
ESOP
10.0%
Other
6.0%
Comparison
Before → After this round
Before
After
This round
Dilution 20.0% · Seed range (15–25%)
Cap table before
What this means
For $500K you give up 20.0% · $25K/point
At $50.0M exit your stake = $32.0M
You keep voting control with 64.0%
After Series A (~22% dilution) you'd hold ~49.9%
Scenario comparison
Compare four deal structures side-by-side and apply the one that protects your ownership.
Compare
Negotiation scenarios
Advanced modeling
Stress-test future rounds, exit scenarios and SAFE conversions before signing.
Turn dilution into a deal
Pre-fill your business plan with this cap table and brief investors with confidence.
Next step
Validate this round against your business plan
We'll pull pre-money, raise size and dilution straight into your investor narrative.
Equity Report
Formula, June 2026 benchmarks, expert tips, mistakes and real cap-table case studies — all in one read.
Equity dilution formula
Investor % = Investment ÷ (Pre-Money + Investment)Step-by-Step Breakdown
Calculate post-money valuation
Post-Money = Pre-Money + InvestmentThe valuation that defines the new share price.
Compute investor equity
% = Investment ÷ Post-MoneyThe percentage of the company the new investor owns after closing.
Project founder ownership after
Founder After = Founder Before × (1 − Investor %)Existing founder ownership is diluted proportionally to the new equity issued.
Example Calculation
Dilution benchmarks (June 2026)
Typical per-round dilution by stage to help you calibrate your ask and term sheet.
| Industry | Low | Average | High | Key drivers |
|---|---|---|---|---|
Pre-Seed | 8% | 12% | 15% | |
Seed | 15% | 20% | 25% | |
Series A | 20% | 25% | 30% | |
Series B | 15% | 20% | 25% |
* Benchmarks reflect first 6–12 months to launch in USD. Figures vary by region, team size, and market conditions. Click any source to verify the underlying data.
Expert tips for a 2026 raise
Always negotiate post-money option pool
A pre-money pool shuffle transfers dilution to founders only.
💡 Action: Insist the option pool top-up sits inside the post-money capitalization.
Model 3 rounds ahead
Cumulative dilution from Seed → Series B routinely lands founders at 35–45%.
💡 Action: Use the multi-round simulator before signing any single round.
Refuse full-ratchet anti-dilution
Broad-based weighted average is the 2026 standard.
💡 Action: If the term sheet says full-ratchet, send back a redlined broad-based version.
Plan a founder vesting refresh
At Series A, ask for a 2-year refresh on founder shares.
💡 Action: Include the refresh in the term sheet — easier than asking later.
Secondary at Series B
Take 5–10% off the table at Series B without spooking lead investors.
💡 Action: Negotiate a structured secondary alongside the primary raise.
Common equity mistakes to avoid
Pre-money option pool shuffle
Lead investor demands a fresh option pool included in pre-money.
✓ Instead: Move the pool top-up to post-money — recovers 3–5% founder ownership.
Accepting 1× participating preferred
Investors double-dip at exit (preference + pro rata share).
✓ Instead: Negotiate to 1× non-participating; cap participation at 2× if forced.
Ignoring the liquidation stack
Multiple preferred rounds can stack to wipe out founder proceeds.
✓ Instead: Run the exit waterfall at 3 exit valuations before signing.
Raising too much too early
38%+ dilution at Seed locks in a structurally bad cap table.
✓ Instead: Target 15–25% Seed dilution and use bridge SAFEs if needed.
Real-world equity cap-table examples
See how founders modeled dilution and negotiated better terms.
AI Productivity SaaS
Challenge: Founders accepted a pre-money option pool shuffle without modeling the dilution impact.
Pre-Money
$8M
Raise
$2M
Pool Shuffle
+5%
Hidden Dilution
+4.2%
Outcome: Renegotiated to a post-money option pool, recovering 4.2% founder ownership before closing.
Marketplace Series A
Challenge: Term sheet included 1× participating preferred, materially reducing founder exit payout.
Investment
$8M
Exit
$120M
With Participating
$54M
Non-Participating
$66M
Outcome: Negotiated to 1× non-participating preferred, saving $12M in founder proceeds at exit.
Climate Hardware Startup
Challenge: Raised too much too early at a low valuation, locking in 38% Seed dilution.
Seed Dilution
38%
Series A Dilution
24%
Founder After A
29%
Industry Norm
45–55%
Outcome: Used the equity calculator to right-size next round, raising less at a 3.2× step-up to preserve control.
* Case studies are based on industry averages and anonymized data from similar companies.
Startup Valuation Calculator
Defensible valuation, four methods.
Guide: What is a cap table?
Founder-grade guide with frameworks & examples.
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