Convertible Note & SAFE Calculator
Best Conversion Terms
Conversion Price:$1/share
Shares Issued:500,000
Ownership:4.76%
Investment Terms
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Current Cap Table
Conversion Scenarios
At Valuation Cap
Conversion Price:$1
Shares Issued:500,000
Ownership %:4.76%
Effective Valuation:$10,000,000
With Discount
Conversion Price:$2
Shares Issued:312,500
Ownership %:3.03%
Effective Valuation:$16,000,000
Most Favorable
Conversion Price:$1
Shares Issued:500,000
Ownership %:4.76%
Effective Valuation:$10,000,000
MOST FAVORABLE
Next Round Details
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Valuation Impact Analysis
Key Insights
- Valuation cap becomes effective when the round valuation exceeds $10,000,000
- At valuations below $12,500,000, the 20% discount provides better terms
- Maximum ownership achieved: 11.11%
- Every $5M increase in valuation reduces investor ownership by ~0.0%
Cap Table Impact
Before Conversion
Founders80.00%
Employees15.00%
Existing Investors5.00%
After Conversion & New Round
Founders66.67%
Employees12.50%
Existing Investors4.17%
SAFE Holder4.17%
New Round Investors12.50%
Dilution Impact
Founders-13.3%
Employees-2.5%
Existing Investors-0.8%
Multiple Instruments Stack
Model multiple SAFEs and convertible notes to see their combined impact
Convertible Instrument Best Practices
- Post-Money SAFEs are more founder-friendly as they provide certainty about dilution
- Valuation caps reward early investors but can cause significant dilution if set too low
- Discount rates typically range from 15-25%, with 20% being standard
- Interest on notes compounds dilution - a $500K note at 6% for 18 months adds $45K to conversion
- Multiple instruments can stack up quickly - track total dilution carefully
- Consider setting caps at 2-3x your current valuation to balance investor upside with founder dilution
Want to learn more about convertible notes?
Understand how convertible notes work, compare them to SAFEs, and learn how to structure the best terms for your startup financing.
Read the complete convertible notes guide