๐Ÿ’ฐ

Pre-Money & Post-Money Valuation Calculator

Calculate the investment consideration, post-money valuation, investor ownership and share allocation when an investor acquires a stake through a combination of primary capital injection and secondary share sale. More info →

Input

Enter the transaction details to calculate pre-money, post-money valuation and investor ownership.
๐Ÿ’ก

How This Calculator Works

Pre-money is what the company is worth before an investment; post-money is its worth after. An investor's stake can come from new shares (primary, where the money goes into the company) or from buying existing shares (secondary, where the money goes to selling shareholders). Only primary money adds to post-money value.

The Formulas

Post-Money = Pre-Money + Primary Investment
Investor Ownership = (Primary + Secondary) ÷ Post-Money
Price per Share = Pre-Money ÷ Existing Shares
Percentage split: Injection Multiple = (Stake × Primary%) ÷ (1 − Stake × Primary%), Primary = Multiple × Pre-Money, Secondary = [Stake − (1 − Stake) × Multiple] × Pre-Money  ยท  New Shares = Primary ÷ Price

What Each Input Does

Pre-Money Equity Valuation
The agreed value of the company before the investment.
Stake Acquired by Investor (%)
The ownership the investor ends up with.
Primary & Secondary Split
Percentage โ€“ enter what share of the stake comes from new shares; the rest is secondary.
Absolute No. โ€“ enter the primary and secondary amounts directly.
Existing Shares Outstanding
Shares in issue before the deal. Used for the price per share and share counts.

Step by Step

  1. The primary investment and secondary proceeds are worked out from the split.
  2. Post-money = pre-money + primary investment.
  3. Investor ownership = total investment ÷ post-money; existing shareholders keep the rest.
  4. Price per share = pre-money ÷ existing shares; new shares issued = primary ÷ price.

Reading the Result

Primary โ€“ new money for the company to grow.
Secondary โ€“ cash to selling shareholders; it does not raise post-money value.

Quick Example

Pre-money 8,000,000, investor stake 20%, 1,000,000 existing shares, 100% primary. The investor puts in 2,000,000, so post-money is 10,000,000 and they own 20%. The price per share is 8.00, so 250,000 new shares are issued (1,250,000 in total). With a 50/50 split instead: 888,889 primary + 888,889 secondary, post-money 8,888,889, still 20% ownership.