MetricKitMetricKitBrowse calculators

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.
Related definitions:option pooldilutionpre money valuationpost money valuation
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: formulas, ownership, and pitfallsPro rata rights: what they mean and how to estimate your check size
 
$
 
$
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

  1. Enter pre-money valuation and new investment amount.
  2. Enter current option pool % (fully diluted pre) and target option pool % (post-money).
  3. 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.

Related calculators

Finance
Deferred Revenue Rollforward Calculator
Bridge billings to recognized revenue by rolling deferred revenue forward for a period.
Finance
Break-even Revenue Calculator
Estimate the revenue needed to break even given fixed costs and gross margin.
Finance
NPV Calculator
Calculate net present value (NPV) from initial investment, annual cash flow, years, and discount rate.
Finance
IRR Calculator
Estimate internal rate of return (IRR) for an investment using yearly cash flows.
Finance
Discounted Payback Period Calculator
Estimate discounted payback period using a discount rate (and compare to simple payback).
Finance
Cash Runway Calculator
Estimate runway from cash balance, revenue, gross margin, and operating expenses (optionally with revenue growth).

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.