5 years ago 9/23/2020

[**Safe & Convertible Note Calculator**](https://releasenotes.carta.com/safe-and-convertible-note-calculator-1Ee4oM)

**What’s coming:**

- This scenario modeling tool helps founders predict the future impact of Safe and Note ownership when converted at a future priced round.

**Who this affects:**

- Users: Equity administrators, Law firm partners  
- Packages: All packages (Launch, Starter, Growth, Scale, and IPO-Ready will receive this calculator)

**What’s new:**

- **View pre and post-money** dilution before and after a future priced round, visualizing your ownership at multiple future valuations.  
- **Model multiple Notes or Safes and a priced round** to account for all anticipated fundraising activity between now and the completion of a future priced round.  
- **Assess the potential impact of different types of convertibles**, including pre-money Safes vs. post-money Safes.

**Timing: In September, all companies received access to this calculator.**

****

## Calculation Definitions For Reference:

**Option Pool Increase**  
(Target Available Pool % *  Post-Money Fully Diluted Shares) - Available Options

**Post-Money Valuation**  
Preferred Price Per Share * Post-Money Fully Diluted Shares

**Preferred Price Per Share**  
Pre-Money Valuation / (Current Fully Diluted Shares + Option Pool Increase + Converted Shares)

**New Fully Diluted Shares**  
Current Fully Diluted Shares + New Money Preferred Shares + Option Pool Increase + Converted Shares

**Conversion Price Per Share (Convertible Notes and Pre-Money Safe)**  
Lower of:

- (1 - Conversion Discount) * Preferred Price Per Share  
- Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Option Pool Increase)

**Conversion Price Per Share (Post-Money Safe)**  
Lower of:

- (1 - Conversion Discount) * Preferred Price Per Share  
- Valuation Cap / (Outstanding Shares + Outstanding Options + Available Options + Converted Shares)

**Safe/Notes Ownership:**

- Convertible Note Converted Shares / New Fully Diluted Shares  
- Safe Converted Shares / New Fully Diluted Shares

**Safe/Note holders post-priced round**  
Converted Shares / New Fully Diluted Shares

**New investors post-priced round**  
New Money Preferred Shares / New Fully Diluted Shares

**Your post-priced round ownership**  
Founder Shares / New Fully Diluted Shares

**Dilution of Founder Shares**  
(% change in Founder Ownership / Current Fully Diluted Shares) * 100

**Value of your shares post-priced round**  
Founder Shares * Preferred Price Per Share

David Zhang