Startup Equity Dilution Calculator
Understand how new funding rounds, ESOP pools, and convertible notes affect founder ownership and investor stakes.
Inputs
Define your pre-money valuation, investment amounts, note terms, and ESOP pool size.
Outputs
Generate a fully-diluted cap table, founder ownership percentages, and detailed dilution metrics.
Round Parameters
Standard benchmark: 10% ESOP and 20% dilution per round.
Ready to Calculate
Enter your round parameters and click "Calculate" to generate your detailed equity dilution report.
Frequently Asked Questions
What is an ESOP and why does it dilute founders?
An Employee Stock Ownership Plan (ESOP) is a pool of equity reserved for future hires. Investors typically require the ESOP to be created or expanded before their investment (pre-money), meaning the dilution is borne entirely by the existing shareholders (founders) rather than the new investors.
How does a convertible note affect my cap table?
Convertible notes convert into equity during a priced round. They usually convert at a discount to the new round's share price or at a valuation cap, whichever gives the noteholders a lower price per share. This creates additional shares that dilute existing founders.
What is a good founder ownership percentage after a Seed round?
Typically, founders aim to retain between 60% and 80% of the company after a Seed round, depending on the size of the round, the ESOP pool created, and any prior convertible notes converting.