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Option Pool Shuffle Calculator
Estimate founder dilution impact when the option pool is increased to a target percent of post-money (simplified).
In many term sheets, the option pool is increased before the investment and counted in the pre-money. This is often called the option pool shuffle.
The shuffle can materially change effective founder dilution even if the headline pre-money valuation is unchanged.
Prefer an explanation- Read the guide.
Option pool shuffle: how it impacts founder dilution (with example)Fundraising & valuation hub: pre/post-money, SAFEs, notes, and liquidation prefsPre-money vs post-money valuation: dilution, ownership, and option pool mathSAFE conversion guide: cap vs discount and dilution
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$
Percent of fully diluted shares before the round.
%
Percent of fully diluted shares after the round.
%
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
65%
- Pre-money valuation
- $20,000,000
- New investment (round size)
- $5,000,000
- Current option pool (pre-money)
- 10%
- Target option pool (post-money)
- 15%
How to calculate
- Enter pre-money valuation and new investment amount.
- Enter current option pool % (fully diluted pre) and target option pool % (post-money).
- Review post-money ownership split (investor vs option pool vs existing holders).
Formula
Investor % = investment / post-money; option pool shuffle solves for extra pool shares to reach target pool % post-money (simplified share normalization).
- Uses a simplified fully diluted share model normalized to 1 pre-money share base.
- Ignores SAFE/note conversions and any share-class / liquidation preference terms.
- Assumes investor ownership approximation investment / post-money.
FAQ
Why does the option pool shuffle matter-
Because increasing the option pool before the investment effectively reduces the ownership left for existing holders (founders and prior investors), even if the headline valuation is unchanged.
Is this a full cap table model-
No. It's a simplified model to estimate the direction and magnitude. For negotiation and legal accuracy, build a full cap table including SAFEs/notes and share classes.
Common mistakes
- Using pool % defined on different bases (issued vs fully diluted).
- Setting an impossible target pool % given the round size and pre-money.
- Ignoring SAFE/note conversions that also dilute common.
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Quick checks
- Use consistent time units (monthly vs annual) when entering rates and cash flows.
- Run a sensitivity check on the input that drives the result most (often discount rate or growth).
- Treat the output as a decision aid, not a prediction; validate assumptions with reality.