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Equity Dilution Calculator

Business & Tax

Founder ownership across multiple funding rounds

Quick Answer

Equity Dilution Calculator: Founder ownership across multiple funding rounds. Post-money = pre-money + amount raised.

Founder stake after 1 round(s)

70.0%

Diluted 30.0pp · stake value ≈ ¥3500w at post-money

New investor (R1)20.0%
ESOP pool10.0%
Post-money (R1)¥5,000万
Control line 67%/51%Absolute

Cap table after round(s)

Founder70% (70.0%)Investors20% (20.0%)ESOP10% (10.0%)

Steps (round 1)

  1. 1Post-money = pre 4000 + raise 1000 = ¥5000w
  2. 2New investor = 1000 ÷ 5000 = 20.0%
  3. 3ESOP top-up to 10% post-money → old shareholders diluted by 30.0% total
  4. 4Founder: 100.0% → 70.0%

💡 Dilution math: new investor % = raise ÷ post-money — the ESOP shuffle matters: expanding the pool "pre-money" (investor standard) means founders alone absorb it, so negotiate pool size down or push it post-money. Watch the control lines: 67% = supermajority (charter changes), 51% = ordinary control, 34% = veto on major matters. Founders typically exit Series B holding 30-50%.

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How to Use

  1. Enter business figures: fill amounts, tax rates or costs in the Equity Dilution Calculator.
  2. Instant results: payable/cost/profit indicators update live.
  3. Check policy basis: results cite current tax rates and policy references for compliance.
  4. Compare plans: adjust parameters to compare tax or cost outcomes.

Key Points

  • Equity Dilution Calculator is a free online business & tax tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: Founder ownership across multiple funding rounds.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Funding dilution math

Post-money = pre-money + amount raised
New investor % = raise ÷ post-money
All existing holders dilute pro-rata: new stake = old × (1 − investor% − pool%)
Option pool (10–15% typical) comes out of the founders' side pre-close
Rule of thumb: keep founders above 50% after Series A

Example: ¥20M pre + ¥5M raise (20%) with 10% pool → founders 70%; after a ¥80M pre + ¥20M round → 56%.

FAQ

How do I use the Equity Dilution Calculator?
Open the page and fill in the input fields — results update automatically. Founder ownership across multiple funding rounds.
Are the results accurate?
Yes. Standard tax and accounting formulas are used. Official filings should follow your tax authority.
Is it free?
Completely free, no registration required.
Are tax rates up to date?
Current standard rates are used and synced when policies change.
Can results be used for official filing?
For reference only. Official tax filing should follow the tax authority's determination.

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Source & Updates

Based on current standard tax rates and accounting practice. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Equity Dilution Calculator[EB/OL]. https://www.yijiansuan.com/en/c/biz/equity-dilution

Results provided by this tool are for reference only and do not constitute professional advice.