Funding valuation distinguishes a company’s value before investment from its value immediately afterward.
Pre & Post Money Valuation
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Pre-money val
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Post-money val
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Table of Contents
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What is Pre and Post Money Valuation ?
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How to Use This Calculator
- Enter or select Investment, Investor's equity.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Post-money = investment/ownership acquired; pre-money = post-money−investment
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Variables Explained
| Input | What it means |
|---|---|
| Investment | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| Investor's equity | The shareholder funding or residual ownership value used in the selected ratio. |
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Worked Example
Investing 200,000 for 20% implies post-money of 1 million and pre-money of 800,000.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- Ownership should refer to the same fully diluted basis used in the investment terms.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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Sources & References
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