Business

Equity Dilution Simulator

Simulate dilution with a post-money investor % and option pool % from an existing cap table.

Last reviewed by the Radiatus Cloud team

Output

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Model how funding dilutes ownership

Raising money and creating an option pool dilute existing shareholders, and founders are often surprised by how much. This simulator models dilution from a post-money investor percentage and an option pool, so you see your resulting ownership.

Why dilution catches founders out

When investors buy a share of the company, existing owners’ percentages shrink proportionally, because new shares are issued. An option pool for employees dilutes further, and it is often created just before a round, so it comes out of the founders’ stake. The interaction, and the fact that the pool is usually calculated post-money, means the real dilution is larger than the headline investor percentage suggests. Simulating it shows your actual ownership after the round, which is essential for negotiating terms and understanding what you are giving up, rather than being surprised at the cap table.

A planning estimate

This is an estimate for planning from the figures you enter, not financial or business advice. Real outcomes depend on factors beyond any single calculation, so treat the result as a guide. It runs entirely in your browser, so your figures are never uploaded and stay on your own machine, which matters for business numbers you would not want to share.

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Frequently Asked Questions

What is dilution?

The reduction in existing owners’ percentage when new shares are issued, such as to investors or an employee option pool. Ownership shrinks proportionally.

Why do founders underestimate dilution?

Because the option pool, often created before a round, comes out of their stake, so real dilution exceeds the headline investor percentage.

What is an option pool?

Shares set aside for employees. Creating or expanding it dilutes existing shareholders, and it is usually calculated post-money, adding to founder dilution.

Why simulate before raising?

Because it shows your actual ownership after the round, which is essential for negotiating terms and knowing what you are giving up.

Is my data uploaded?

No. The simulation runs entirely in your browser.

Privacy & Security

Calculated locally in your browser. Use for planning only.

Data: None
Client-side-Side
Active
v1.0

How to Use

Paste cap table lines and target investor/pool percentages to simulate ownership.

Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.