Founder tools
Startup calculators
Work out what your company is worth, how much equity to give, how long your money lasts and whether your numbers add up. Free, with tips as you type.
What do these terms mean?Equity and valuation
How much your company is worth if someone invests a given amount for a share of it, Shark Tank style.
Pre-money valuation?Post-money valuation?Equity?
- Post-money valuation
- $500,000
- Pre-money valuation
- $450,000
- Investor owns
- 10%
- Founders keep
- 90%
- Giving 5–25% per round is common for early-stage startups.
- That valuation is within the usual range for an idea ($50k–$1M).
Dilution over funding rounds
How much of the company the founders keep as they raise rounds and set aside shares for employees.
- Founders after round 1
- 76.5%
- Founders after round 2
- 61.2%
- Founders keep 61.2% after 2 rounds.
Co-founder equity split
A starting point for splitting shares between co-founders. Score each person from 0 to 10 on what they bring.
Vesting?Cliff?Founders' agreement?
- You
- 52.1%
- Co-founder
- 47.9%
- Whatever you agree, put it in a founders' agreement with 4-year vesting and a 1-year cliff, so nobody keeps a big stake after leaving early.
SAFE conversion
What share a SAFE investor gets when it converts at your next priced round, using the better of the cap or the discount.
- Converts at a valuation of
- $2,000,000
- SAFE investor owns about
- 5%
- The valuation cap gives the better price ($2,000,000 vs $3,200,000 with the discount).
- Simplified post-money SAFE maths. The exact share depends on the round's details and option pool.
Burn rate and runway
How long your money lasts at your current spending, and whether growing revenue gets you to break-even first.
- Net burn now
- $12,000/mo
- Runway
- 11 months
- Runway with no growth
- 10.0 months
- 6–12 months of runway. Plan your next raise or path to profit soon.
Break-even point
How many sales you need each month to cover your costs.
- Sales needed per month
- 334
- Revenue at break-even
- $8,350
- Per day (30-day month)
- 11.1
- Each sale contributes $15.00 (60% of the price) towards fixed costs.
Unit economics: CAC, LTV and payback
Whether each customer is worth more than it costs to win them.
- Average customer lifetime
- 25.0 months
- Lifetime value (LTV)
- $400
- LTV : CAC
- 6.7 : 1
- CAC payback
- 3.8 months
- LTV:CAC of 6.7 is healthy (3 or more is the usual target).
- You win back CAC in 3.8 months.
Market size: TAM, SAM, SOM
A bottom-up estimate of your market: count the customers, multiply by what each pays.
- TAM
- $240M
- SAM
- $48M
- SOM (yearly revenue)
- $960k
- Your realistic target is $960k a year. Build the plan around SOM, not TAM.
Profit: from revenue to EBITDA and PAT
Follow revenue down to net profit, the way a profit and loss statement does.
Gross profit?EBITDA?EBIT?PBT?PAT?
- Gross profit
- $350,000 · 70%
- EBITDA
- $100,000 · 20%
- EBIT (operating profit)
- $80,000 · 16%
- PBT (profit before tax)
- $70,000
- Tax
- $17,500
- PAT (net profit)
- $52,500 · 11%
- EBITDA margin of 20%: the core business makes money.
MRR and ARR growth
Where your monthly recurring revenue ends up at a steady growth rate.
- MRR in 12 months
- $15,692
- ARR then
- $188,306
- ARR today
- $60,000
- 5–15% monthly growth is solid for an early startup.
- That's 3.1× in 12 months.
Return on investment
What an investment returned, in total and per year.
- ROI
- 250%
- Multiple (MOIC)
- 3.50×
- Per year (CAGR)
- 36.8%
- Early-stage investors usually hope for 10× or more on winners, because most startups return nothing.
Price from cost and margin
The price you need to hit a target gross margin.
- Price
- $30.00
- Profit per unit
- $18.00
- Markup on cost
- 150%
- A 60% margin is a 150% markup on cost. People often mix these up.
These calculators use simplified rules of thumb to help you think. They aren't financial, legal or tax advice. Talk to a professional before signing anything.