Are you an angel investor evaluating a startup opportunity? Or a founder seeking clarity on how your funding terms translate into equity? Our Angel Investment Calculator is a powerful tool designed to help you quickly determine two essential metrics in startup investing:
- Equity Ownership
- Post-Money Valuation
This free tool requires just two inputs—investment amount and pre-money valuation—and provides an instant, clear result. Whether you’re preparing for a pitch, negotiating a term sheet, or learning the ropes of startup financing, our calculator removes the guesswork.
Angel Calculator
🔍 What Is the Angel Investment Calculator?
The Angel Investment Calculator helps investors and entrepreneurs assess how much equity a new investment will yield and what the company’s valuation will be after that investment is made.
It’s a simple tool, but it performs a crucial calculation often needed in venture capital and private equity scenarios.
Key outputs:
- Equity Ownership (%): How much of the company the investor will own post-investment.
- Post-Money Valuation: The total company valuation after the new investment has been added.
🧭 How to Use the Angel Investment Calculator (Step-by-Step)
Using this calculator is incredibly straightforward. Here’s a breakdown:
1. Enter the Investment Amount
Input how much the investor will contribute. For example, if you’re investing $250,000, type that amount in the first field.
2. Enter the Pre-Money Valuation
Input the company’s valuation before the investment. For example, if the startup is valued at $1 million pre-money, input “1,000,000.”
3. Click “Calculate”
The tool will instantly compute:
- Your Equity Ownership
- The Post-Money Valuation
4. Review the Results
You’ll see two values appear:
- Equity Ownership: Displayed as a percentage.
- Post-Money Valuation: Shown in dollars.
5. Click “Reset” (Optional)
If you want to try different scenarios, hit the Reset button to clear the fields and start over.
💼 Example: How the Tool Works in Practice
Let’s walk through a practical example:
Scenario:
- Investment: $100,000
- Pre-Money Valuation: $900,000
Step-by-Step Breakdown:
- Input 100,000 into the Investment field.
- Input 900,000 into the Pre-Money Valuation field.
- Click Calculate.
Output:
- Post-Money Valuation = $900,000 + $100,000 = $1,000,000
- Equity Ownership = ($100,000 / $1,000,000) × 100 = 10%
So, the investor will own 10% equity in the company.
🧠 Why Equity and Post-Money Valuation Matter
Understanding these metrics is vital because:
- Founders can manage dilution and cap table projections.
- Investors can assess whether their investment yields sufficient ownership.
- Advisors can better structure funding rounds and advise clients.
- Accelerators & Incubators can clearly explain funding terms to cohorts.
💡 Use Cases for the Angel Investment Calculator
- Startup founders preparing fundraising materials
- Angel investors reviewing multiple opportunities
- VC analysts modeling early-stage deals
- Finance students learning venture economics
- Accelerator or pitch competition coordinators
❓ Angel Investment Calculator – FAQs
1. What is an angel investor?
An angel investor is an individual who provides early-stage capital to startups, often in exchange for equity.
2. What is pre-money valuation?
It’s the value of the startup before new capital is added.
3. What is post-money valuation?
It’s the company’s value after the new investment is added. It equals pre-money valuation + investment.
4. How is equity ownership calculated?
Equity % = (Investment / Post-Money Valuation) × 100
5. Can I use this tool for SAFE or convertible notes?
No. This calculator is for priced rounds only. SAFEs and notes require more complex modeling.
6. Is the calculator suitable for Series A or later rounds?
Yes, if the investment terms are based on a pre-money valuation and equity, it works for any stage.
7. Is the result legally binding?
No. This is a decision-support tool, not a legal contract.
8. Can founders use this tool?
Absolutely. Founders can use it to see how much equity they give up during a round.
9. What if I enter 0 or negative numbers?
The calculator won’t process invalid inputs. A prompt will alert you to enter valid values.
10. What is the difference between pre-money and post-money?
Pre-money is before investment. Post-money is after investment.
Post = Pre + Investment.
11. Does this account for option pools or liquidation preferences?
No. This calculator is for basic equity math and doesn’t include advanced deal terms.
12. Is this calculator mobile-friendly?
Yes, it’s designed to work well across devices.
13. Can I save my results?
Currently, no save feature exists. You can screenshot or copy the results manually.
14. Does it calculate ROI or exit projections?
No. This calculator only computes equity and valuation at the point of investment.
15. What if the company is overvalued?
That’s a business risk. The calculator still shows the equity stake based on the numbers entered.
16. Can I use this for crowdfunding equity rounds?
Yes, if each investor’s contribution is tracked individually, this calculator helps compute their specific stake.
17. Is there a limit to how high I can set the valuation or investment?
No, but extremely high or unrealistic figures might skew the utility of the output.
18. Why is post-money valuation important to investors?
It determines how much of the company they own and helps evaluate potential returns.
19. Is this calculator free to use?
Yes. It’s 100% free and available to all users without registration.
20. Can I embed this calculator on my website?
This version is designed for use on one site. For embedding, consult the developer or licensing terms.
📊 Final Thoughts
Early-stage investing doesn’t have to be complex. Our Angel Investment Calculator gives you a fast, transparent view into your deal’s implications. Whether you're writing your first check or finalizing a cap table, it’s a reliable companion to guide better investment decisions.