How the SAFE conversion calculator works
This free SAFE calculator shows what a SAFE actually costs you. Enter the SAFE amount, valuation cap, and discount to see the effective conversion valuation, the ownership the SAFE investor receives at the next priced round, and which term - cap or discount - ends up applying. No signup required, and results are shareable via URL.
SAFEs feel free when you sign them because the dilution is deferred - the equity math only happens later, at the next priced round, which is why founders are routinely surprised at conversion. Modeling it before you sign is the whole point.
The formulas
Conversion valuation = min(valuation cap, (1 - discount) x next-round valuation)
The SAFE converts at whichever term gives the investor the better (lower) price.
Ownership % = SAFE amount / conversion valuation
The share of the company the SAFE investor holds immediately after conversion.
Benchmarks founders should know
- Typical pre-seed SAFE size: $500K-$2M
- Typical valuation cap: $4M-$15M - varies widely with traction and market
- Typical discount: 10-20%
- Combined SAFE dilution before Series A: commonly 10-25%
Frequently asked questions
What is a SAFE?
A SAFE (simple agreement for future equity) is an investment contract that converts into shares at your next priced round, rather than setting a price today. Created by Y Combinator, it has become the standard instrument for early-stage startup fundraising.
Does the cap or the discount apply?
Whichever gives the investor the lower price. If the discounted round price is below the cap-implied price, the discount applies; otherwise the cap does. This calculator shows you which term wins for your numbers.
What is the difference between a post-money and pre-money SAFE?
The post-money SAFE, the YC standard since 2018, fixes the investor's ownership at amount divided by cap regardless of how many other SAFEs you raise. The older pre-money SAFE made dilution mutual and murky - each new SAFE diluted every earlier SAFE holder, so nobody knew their ownership until conversion.
How much do SAFEs dilute founders?
Each SAFE raised at a cap dilutes you by roughly the amount divided by the cap - a $500K SAFE at a $5M cap costs about 10%. Stacking several SAFEs before a priced round commonly costs founders 10-25% combined, which is why modeling each one matters.
Is this SAFE calculator free?
Yes. The Accelerator.tools SAFE conversion calculator is completely free, requires no signup, and results can be shared or embedded via URL.
Last updated July 2026 by the Accelerator.tools editorial team. Explore more free tools in the calculator library or browse the community-voted tool directory.