Shark Tank Equity Calculator
Enter the value of the business and the amount being invested. The calculator will show how much of the company that investment represents.
Sometimes you know the valuation before you know the percentage. A business might be worth $2 million, for example, and an investor is thinking about putting in $200,000. The next question is pretty simple: how much of the company does that money buy?
This calculator works that out. Add the business valuation and investment amount, and it shows the equity percentage behind the deal. It is the other side of the valuation calculation you hear so often on Shark Tank.
Calculate the Equity
Enter the business valuation and investment amount.
A $200,000 investment represents 10% of a business valued at $2 million.
$200,000 ÷ $2,000,000 × 100 = 10%
How Do You Calculate Equity From a Valuation?
The investment is only one piece of the business. If the whole company is valued at $2 million and someone puts in $200,000, that investment is one-tenth of the valuation. One-tenth is 10%, so the investment represents 10% equity.
The calculation is investment divided by valuation, then multiplied by 100. That is really all this calculator is doing. It just saves you from having to work through the percentage every time a new number comes up.
A Simple Equity Example
Say a company is valued at $1 million and an investor puts in $250,000.
At those numbers, the investment represents 25% of the business.
What If the Investment Stays the Same?
The same amount of money can buy very different pieces of two businesses. Put $100,000 into a company valued at $1 million and it represents 10%. Put that same $100,000 against a $2 million valuation and it represents only 5%.
Nothing happened to the $100,000. The valuation changed, so the percentage changed with it. That is why entrepreneurs and Sharks can spend so much time arguing over a few percentage points even when they already agree on the amount of money going into the business.
Why Does Equity Matter on Shark Tank?
Equity is the piece of the company being discussed in the deal. An entrepreneur who gives away 10% is keeping a much bigger piece than one who gives away 30%, even if both receive the same investment. That makes the percentage pretty hard to ignore.
But a smaller percentage is not automatically a better deal, and a bigger percentage is not automatically a worse one. The terms can include different investors, loans, royalties or other conditions. This calculator only shows the simple equity percentage created by the valuation and investment you enter.
Equity and Valuation Work Together
Valuation and equity are really two sides of the same calculation. If you know the investment and equity, you can work out the valuation. If you already know the valuation and investment, you can work backward and find the equity.
That is also why a Shark’s counteroffer can look small on the screen and still change the deal quite a bit. Moving from 10% to 15% does not sound like a huge jump at first. But the Shark would own half again as much of the company for the same investment.
Try a Real Shark Tank Deal
These examples use the valuation implied by real on-screen terms and the investment amount from the deal.
Shark Tank Equity Calculator FAQs
How do I calculate equity from valuation?
Divide the investment amount by the business valuation and multiply the result by 100. A $200,000 investment into a $2 million valuation equals 10%.
How much equity is $100,000 in a $1 million company?
$100,000 is 10% of $1 million, so the investment represents 10% equity.
How much equity is $250,000 at a $2 million valuation?
$250,000 divided by $2 million equals 0.125. Multiply by 100 and the result is 12.5% equity.
Can I use this for a Shark Tank counteroffer?
Yes. Enter the valuation implied by the terms you are comparing and the investment amount to see the corresponding equity percentage.
Does this calculate founder dilution?
No. This is a simple investment-to-valuation equity calculator. A separate dilution calculator is better when there are existing shareholders, multiple funding rounds or new shares being issued.
More Shark Tank Calculators
Need a different part of the deal? Try another calculator.