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Investment & Equity Valuation Calculator

Calculate pre-money and post-money values for a simple equity investment.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

An investment of 200,000 for 20% of the post-investment equity implies a post-money value of 1,000,000 and a pre-money value of 800,000.

Post-money value = investment ÷ investor ownership fraction; pre-money = post-money − investment

Worked example

Enter these known values and leave the other values blank.

Investment
200000 USD
Investor's equity
20 %
Pre-money valuation
800000 USD
Post-money valuation
1000000 USD

Assumptions and limitations

  • Use the investor’s ownership immediately after the modeled investment. Option-pool changes, convertible instruments, secondary sales and simultaneous financing can require a more detailed capitalization model.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Which ownership percentage belongs here?

Use the investor’s ownership immediately after the modeled investment. Option-pool changes, convertible instruments, secondary sales and simultaneous financing can require a more detailed capitalization model.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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