Free Startup Equity & Dilution Calculator — Quozify

History

Founders

2
50.0%
50.0%
Total Founder Shares1,000,000

Investors

1
Total Investment$1,000,000

Round Calculator

Total: $1,000,000 · 1 investor

10%

Pre-money pools dilute existing shareholders (including founders) before the new money hits the cap table.

Equity Distribution

Cap Table
4
stakeholders
Founder 1founder
500,000 shr38.14%
Founder 2founder
500,000 shr38.14%
Angel Investorangel
200,000 shr15.25%
Option Pooloption pool
111,111 shr8.47%
Pre-Money
$5,000,000
Investment
$1,000,000
Post-Money
$6,000,000
Price / Share
$5.00
Fully Diluted
1,311,111

The fastest way to model startup equity

Quozify is a free, browser-based cap table simulator built for founders, angels, and VCs. Model priced rounds, SAFE notes, and convertible notes to see exactly how dilution affects every stakeholder — in real time, with no login required.

Whether you're closing a Seed round, negotiating a Series A term sheet, or stress-testing a valuation cap on a SAFE, Quozify calculates price per share, post-money ownership, and fully diluted share counts instantly.

How dilution is calculated →What is a cap table? →How SAFE notes convert →Pre-money vs post-money →

What you can model

  • Equity dilution — see how each round dilutes founder and investor ownership
  • SAFE notes — pre-money and post-money YC SAFEs with valuation caps and discounts
  • Convertible notes — interest rate, maturity, and conversion mechanics
  • Option pools — pre-money or post-money basis, with named grant allocations
  • Multiple rounds — model Seed, Series A, B, and beyond sequentially
  • Scenario comparison — save and compare alternative term sheet structures

Equity & dilution — common questions

How does equity dilution work in a startup?
Equity dilution occurs when a startup issues new shares during a funding round, reducing the ownership percentage of existing shareholders such as founders and early investors. For example, if founders own 100% of 1,000,000 shares and the company issues 250,000 new shares to investors, the founders' ownership drops to 80% (1,000,000 / 1,250,000). Dilution is a natural part of raising capital — founders trade ownership percentage for capital that grows the company's absolute value.
What is a cap table?
A cap table (capitalization table) is a spreadsheet or database that shows the equity ownership of a company. It lists all shareholders — founders, investors, and option holders — along with their share counts, ownership percentages, and the type of equity they hold (common shares, preferred shares, options, SAFEs, or convertible notes). Cap tables are updated after every funding round and equity event.
How do you calculate dilution after a funding round?
To calculate post-round dilution: (1) Determine the pre-money valuation. (2) Add the investment amount to get post-money valuation. (3) Calculate new shares issued = investment ÷ price per share. (4) Price per share = pre-money valuation ÷ pre-money shares outstanding. (5) Each existing holder's new ownership = their shares ÷ (total pre-money shares + new shares + option pool shares). Quozify automates all these steps in real time.
What is the difference between pre-money and post-money valuation?
Pre-money valuation is a company's agreed value before new investment is added. Post-money valuation equals pre-money valuation plus the new investment. For example, a $4M pre-money valuation with $1M investment gives a $5M post-money valuation and grants investors a 20% ownership stake ($1M ÷ $5M). The distinction matters for calculating founder dilution and the price per share.
How does a SAFE note convert to equity?
A SAFE (Simple Agreement for Future Equity) converts into equity at the next priced round. Conversion depends on the SAFE type: a post-money SAFE (YC standard) converts based on a set valuation cap or a discount to the priced round, whichever is more favorable to the investor. The number of shares issued = SAFE amount ÷ conversion price per share. Pre-money SAFEs dilute founders before new investors are factored in.
What is an option pool and how does it affect dilution?
An option pool is a block of shares reserved for employee stock options. Pre-money option pools dilute existing shareholders (founders) before investors enter — so investors effectively get their percentage on the post-pool, post-money cap table. Post-money option pools dilute everyone including the new investors. Investors typically require a pre-money option pool of 10–20% to ensure adequate equity for future hires.