Equity dilution calculator

Calculate share dilution from a stock offering or financing round

Estimate ownership dilution, post-issuance shares, capital raised, and offering discount using current shares outstanding, new shares issued, and price assumptions.

Formula

Ownership dilution = new shares issued / post-transaction shares outstanding. The calculation shows how much of the company the new issuance represents after the raise or conversion.

Estimated impact

Post-issuance shares12,500,000
Ownership dilution20.00%
New capital raised$2,250,000
Implied post-money value$14,250,000
Offering discount25.00%

When to use a share dilution calculator

Dilution math is simple, but the trading context depends on the filing terms, registration status, and remaining financing capacity.

Public stock offering

Estimate how much a registered direct offering, ATM sale, or PIPE expands the share count.

Warrants and convertibles

Model the impact if warrants are exercised or convertible notes become common stock.

Startup or cap table math

Use the same dilution formula to estimate a new round's ownership impact.

Equity dilution FAQ

How do you calculate share dilution?

Divide the newly issued shares by the total shares outstanding after the issuance. If a company has 10 million shares and issues 2.5 million more, the new shares represent 20% of the post-issuance share count.

Is dilution always bad?

Not always. Dilution can fund growth, acquisitions, debt reduction, or survival. It becomes more concerning when the company raises at a steep discount, has weak cash runway, or has repeated financing overhang.

What should public-market traders check after calculating dilution?

Check the SEC filings behind the issuance: S-1, S-3, 424B5, 8-K, ATM agreement, warrant terms, conversion price, resale registration, and remaining shelf capacity.

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