What is equity dilution?
Equity dilution is the drop in your ownership percentage when a company issues new shares, usually to raise money. You own the same number of shares, but they represent a smaller slice of a larger company.
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Equity Dilution Calculator
See exactly how much of your company you keep after a funding round, and how much the new investors take. Enter your numbers, or edit the example below.
%
Your stake before this round.
$
$
Your stake after the round
80.0%
Investors take20.0%
Post-money valuation$5,000,000
You gave up20.0 pts
Pre-filled with an example (100% owner, $4M pre-money, $1M raise). Change any field to use your own numbers.
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Dilution is one round. solvee models them all.
solvee maps your cap table across every round ahead, so you know what you will own at exit, not just after the next raise.
Model your cap table freeHow dilution is calculated
A priced round works from the pre-money valuation, amount raised, and your current stake:
Post-money = Pre-money + Amount raised
Investor share = Amount raised ÷ Post-money
Your new stake = Current stake × (Pre-money ÷ Post-money)
A $1M raise on a $4M pre-money makes the post-money $5M. Investors get 20%, and a sole founder drops from 100% to 80%.
How to read your result
- 15–25% per priced round is a typical range founders give up.
- Watch the stack. Three rounds of 20% each leave a founder near 50%, before any option pool.
- Raise on traction. A higher pre-money valuation means less dilution for the same money.
How to minimize dilution
- Raise only what you need to reach the next real milestone.
- Increase valuation before raising by showing revenue, growth or a key hire.
- Account for the option pool. Investors often want it created pre-money.
Model every round with solvee.
Frequently asked questions
What is equity dilution?
Equity dilution is the reduction in your ownership percentage when a company issues new shares, typically to raise capital.
How do you calculate dilution?
Add the amount raised to the pre-money valuation. Investor share is amount raised divided by post-money. Your new stake is your current stake times pre-money divided by post-money.
How much equity should I give investors?
Most priced rounds land in the 15–25% range. The exact figure depends on how much you raise and your valuation.
How much dilution is normal per round?
Around 15–25% per priced round is common. Because dilution compounds, plan the whole sequence and include the option pool.