#916 · Startup Tool

SaaS Dilution Calculator

Estimate SaaS founder dilution from new investor ownership and option pool expansion. The calculator shows remaining ownership, ownership lost, and dilution risk for future rounds.

Calculator

SaaS decision inputs
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How to use this calculator

  • Enter the SaaS operating or financing inputs that match the current month or round.
  • Use recurring revenue only where the input asks for MRR or ARR.
  • Click calculate to see the main result, supporting metrics, health score, and status.
  • Use the result as a planning estimate before making pricing, hiring, fundraising, or cap table decisions.

What the result means

The result shows how much ownership remains after investor dilution, option pool expansion, and a future round. Dilution is normal, but excessive dilution can weaken founder incentives and control.

Ownership After = Current Ownership × (1 - Investor Ownership - Option Pool); Future Ownership = Ownership After × (1 - Future Round Dilution)

This is a simplified dilution model. Real cap tables should include preferred shares, SAFEs, notes, warrants, and option grants.

Example calculation

If current ownership is 80%, investor ownership is 18%, option pool is 10%, and future dilution is 15%, future ownership falls to about 49%.

Tips for better results

  • Compare the result with several prior months instead of one isolated period.
  • Model conservative, base, and aggressive cases before making decisions.
  • Keep recurring revenue, one-time services, and discounts separate.
  • Review the result together with churn, burn, runway, and ownership impact.

FAQ

How much dilution is normal for a SaaS seed round?

Seed dilution varies, but founders should model investor ownership, option pool treatment, and future rounds before accepting terms.

How do I calculate founder dilution after Series A?

Multiply current ownership by one minus the new dilution percentage, then adjust for any option pool increase or converted securities.

Does SaaS dilution include the employee option pool?

Fully diluted ownership should include the option pool, issued options, SAFEs, notes, and all shares that could convert.

How can SaaS founders reduce dilution?

Raise only the capital needed, improve valuation with stronger metrics, negotiate option pool treatment, and avoid unnecessary bridge dilution.

Why does small round dilution matter over time?

Multiple rounds compound dilution. A moderate dilution in one round can become severe after several financings and option pool increases.

SaaS decision modules

ModuleWhat it shows
Post-round OwnershipOwnership after investor and pool dilution.
Ownership LostPercentage points lost in this round.
Future OwnershipOwnership after another modeled round.
Dilution RiskHealth score from remaining ownership.

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