SAFE Calculator
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By Legal & FinanceDec 28, 2025
Raising money on a SAFE (Simple Agreement for Future Equity)? Use this simulator to understand exactly how much of your company you are selling before you sign the papers.
Key Inputs
To get an accurate simulation, you need to input terms for both your current SAFE and your future priced round.
1. The SAFE Terms
- Investment Amount: How much cash you are raising now (e.g., $500k).
- Valuation Cap: The maximum valuation at which your investors' money will convert.
- Discount Rate: The percentage discount investors get if you raise at a lower valuation (typically 20%).
2. The Future Round (Series A)
- Expected Pre-Money Valuation: What you hope to raise at in the future (e.g., $10M).
- New Option Pool: The % of equity you will set aside for future hires (typically 10-15%).
Interpreting the "Conversion Price"
The simulator will calculate the Conversion Price for your SAFE investors. It automatically compares the Cap vs. the Discount and chooses the lower price per share (which is better for the investor).
💡 Pro Tip
The "Stacking" Trap: If you raise multiple SAFEs with different caps (e.g., $5M Cap then $8M Cap), use the "Add Tranche" button in the simulator to layer them. This reveals the "pancake effect" of dilution that surprises many founders.