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SAFE Conversion Calculator
Estimate how a SAFE converts in a priced round using a valuation cap and/or discount (simplified).
A SAFE typically converts into equity in a priced round at the better of a valuation cap price or a discount to the round price (depending on terms).
This calculator estimates conversion price and resulting SAFE shares using a simplified priced-round model.
Prefer an explanation- Read the guide.
SAFE conversion guide: cap vs discount and dilutionFundraising & valuation hub: pre/post-money, SAFEs, notes, and liquidation prefsConvertible note: interest, cap/discount, and conversion basicsOption pool shuffle: how it impacts founder dilution (with example)
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Set to 0 if the SAFE has no cap.
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Set to 0% if the SAFE has no discount.
%
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Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
4.76%
- SAFE amount
- $500,000
- Valuation cap (optional)
- $8,000,000
- Discount (optional)
- 20%
- Priced round pre-money valuation
- $20,000,000
- Existing fully diluted shares
- 10,000,000
- New money in priced round
- $5,000,000
How to calculate
- Enter SAFE amount and the priced round pre-money valuation.
- Enter valuation cap and/or discount (set to 0 if not applicable).
- Enter existing fully diluted shares and new money investment to estimate ownership.
Formula
Round price = pre-money / shares; SAFE price = min(cap price, discounted round price, round price); SAFE shares = SAFE amount / SAFE price
- Simplified priced-round model; ignores option pool changes, other SAFEs/notes, and legal nuances (post-money SAFE, MFN, etc.).
- Assumes existing shares input is fully diluted and matches the priced round pre-money valuation basis.
FAQ
Cap vs discount: which one applies-
Many SAFEs convert at the better (lower price) of the cap price or the discount price. Terms vary, so confirm your SAFE document.
Why do I need existing shares-
To convert valuation into a per-share price. Conversion is ultimately about how many shares the SAFE buys at a given price per share.
Common mistakes
- Using shares that are not fully diluted (option pool and other SAFEs matter).
- Ignoring post-money SAFE mechanics and MFN clauses (terms vary).
- Assuming the output matches legal documentation (simplified model).
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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.