Pre and Post Money Valuation Calculator

Our pre- and post-money valuation calculator does simple math to free your mind up to do more important things when you are negotiating your startup's valuation. It does not answer the question "how much is my startup worth" in the general sense (based on how much revenue, traction, margins or whether it breaks even).

Instead, it does multi-directional math, and if you provide any two values from the investment amount, investor's equity, pre-money valuation, or post-money valuation, you will receive the remaining two values. Let's take a typical scenario: a startup accelerator invests $25,000 for a 5% stake in the company. The calculator will tell you that this startup's valuation was $475k pre-money and is $500k post-money.

Interested in various methods of company valuation? Check out the discounted cash flow calculator!

The difference is rather simple — pre-money valuation is how much the company is worth or the value of a company's equity before the investment flows into the startup. Post-money valuation is how much a startup is worth after the money enters the company.

For example, a startup that lets you store goat pictures in the cloud is valued at $10 million (pre-money). The ACME Venture Capital invests $2.5 million in a series A round. Now the company has whatever it had that was worth $10M, plus the $2.5M in cash, so it's worth $12.5 million. 20% of $12.5 million is $2.5 million, so ACME now has 20% of the company. Note that both pre- and post-money valuations are equity valuations. Try out this example or some figures of your own in the pre- and post-money valuation calculator.

On a separate note, here are some of our other tools that you may be interested in:

• Online marketing conversion calculator; and
• Website ad revenue calculator.