Change the inputs. Follow the formulas. Explore how a funding round, cash burn, future dilution, and investment terms shape an illustrative outcome.
Four calculators · USD amounts · Results rounded for display
01 / A priced round
Ownership & dilution
A company issues new shares at one agreed price. See the post-money value, the new investors’ ownership, and what happens to an existing holding.
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Post-money value
New investors own
Your ownership after the round
Your change in percentage points
Dilution from new issuance
Your holdingOther existing holdersNew investors
A percentage-point change and a relative reduction describe the same change differently. In the starting example, 20% becomes 16%: 4 percentage points lower, or a 20% reduction in the stake.
Formulas & assumptionsPost-money = pre-money + new capital New investor ownership = new capital ÷ post-money Existing holder’s new stake = old stake × pre-money ÷ post-money
One share price, all new money is primary capital, and no convertible conversion or option-pool increase. The agreed capitalization definition matters. A lower ownership percentage does not, by itself, establish a lower dollar value.
Use actual cash received and paid, rather than booked revenue and expenses. This simple model holds monthly cash flows constant.
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Modeled time to cash depletion
Monthly net cash burn
Cash available
Formulas & assumptionsNet cash burn = monthly outflows − monthly inflows Runway in months = cash available ÷ positive net cash burn
The same cash receipts and payments recur each month, with no future raise, seasonality, or one-time changes. Timing within a month is not modeled. For a scheduled borrowing and repayment example, use the loan and runway model. If net burn is zero or negative, the model shows no cash depletion under those inputs. That does not establish profitability or guarantee that future cash needs are covered.
All shares participate in proportion to ownership. Liquidation preferences, fees, taxes, follow-on investments, escrow, and contingent proceeds are not modeled. Use the preference comparison below to explore a different distribution mechanism.
Keep the investment, ownership, preference multiple, and equity proceeds the same. Compare non-participating preferred with uncapped participating preferred.
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Proceeds to preferred investor
Non-participating
Uncapped participating
Preference, then a share of the remainder
Preferred investorCommon holders
A preference is limited by the proceeds available. At a zero-proceeds outcome, both groups receive zero in this model.
Formulas & assumptionsPreference amount = invested capital × preference multiple Non-participating = better of available preference or as-converted proceeds Participating = available preference + ownership share of remaining proceeds
One preferred class and one common class. Non-participating holders may elect the better payout; participating holders have no participation cap. Input proceeds are already available for equity distribution after prior obligations. Other preference classes, seniority stacks, dividends, fees, taxes, escrow, earnouts, and option-exercise mechanics are not modeled.
All scenarios are educational illustrations, not forecasts or transaction valuations. Inputs are calculated in this browser tab and are not sent to a server or stored by these tools.