Model conversion at the cap and discount so you know what each SAFE costs at the next round.
The form starts with a sample post-money SAFE. Model it as-is, or enter your own terms first.
The cap, discount and SAFE type determine the holder's effective conversion price and final ownership.
If the round prices above the cap, the cap gives the SAFE holder more shares.
If the cap is not binding, the discount may still improve the holder's price.
Post-money SAFEs make ownership clearer, but can be more expensive for founders.
The calculator compares cap and discounted round valuation, then estimates post-round ownership after the new round and pool.
# core components discounted_value = round_pre x (1 - discount) effective_value = min(cap, discounted_value) post_safe_pct = amount / cap pre_safe_pct = amount / effective_value final_pct = safe_pct after round + pool dilution
The output is directional because SAFE documents vary.
Use the scenario table to see when the cap stops binding.
The real cost is final ownership, not dollars invested.
New money dilutes SAFE holders and founders after conversion.
Different caps and discounts should be modelled separately.
Post-money SAFEs are simpler and common, but they lock the holder's percentage before later dilution. Model both to see the cost.
The SAFE converts at the round price, with any discount, instead of the cap because that gives the holder more shares per dollar.
No. SAFE conversion depends on the actual document and jurisdiction. Confirm the model with your lawyer before signing.