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SAFE Calculator

Calculate SAFE note conversion scenarios

SAFE Type

Investment Amount ($)

Valuation Cap ($)

Cap Type

Discount Rate (%)

Priced Round Scenario

Series A Pre-money Valuation ($)

Series A Investment ($)

Conversion Results

Effective Valuation

$10,000,000

Cap-based (better)

SAFE Ownership

3.85%

After Series A

Price Per Share

$1.0000

Shares Issued

500,000

Implied Value

$961,538

Cap Table Summary (Post Series A)

Founders76.92%

SAFE Investors3.85%

Series A Investors19.23%

Total100.00%

SAFE Comparison

Scenario	Eff. Valuation	Ownership
At Cap	$10,000,000	3.85%
At Discount	$16,000,000	2.44%
No SAFE (Series A price)	$20,000,000	1.96%

About SAFEs

Valuation Cap: Maximum valuation at which your SAFE converts, protecting early investors if the company grows significantly.

Discount: Percentage discount from the Series A price, rewarding early investors for taking more risk.

Post-money SAFE: Cap includes all SAFE money, making ownership calculation clearer but potentially more dilutive to founders.

What is SAFE Calculator?

A SAFE (Simple Agreement for Future Equity) calculator models the conversion of SAFE notes into equity at a future priced round. It accounts for valuation caps, discount rates, MFN (Most Favored Nation) provisions, and pro-rata rights to show the resulting ownership percentages for founders and investors.

How to use this calculator

1Enter the SAFE investment amount and the valuation cap agreed with the investor.
2Input the discount rate if your SAFE includes one (enter 0 if cap-only).
3Enter the Series A pre-money valuation and the total new investment amount at that round.
4Add any additional SAFEs converting at the same round to see how they stack.
5Review the resulting ownership percentages for SAFE holders, new investors, and founders post-conversion.

Why this matters for founders

SAFEs are the dominant early-stage fundraising instrument (pioneered by Y Combinator). Understanding how they convert is critical because founders often raise multiple SAFEs that stack, and the combined dilution at conversion can be surprisingly large if not modeled in advance.

How to read the results

•A valuation cap sets the maximum price at which the SAFE converts -- lower caps mean more dilution for founders but better terms for investors.
•A discount rate (typically 15-25%) gives SAFE holders a lower conversion price than Series A investors, rewarding their early risk.
•Multiple SAFEs stack: if you raise $500K on a $5M cap and $500K on an $8M cap, both convert at the priced round with different per-share prices.
•Post-money SAFEs (the current YC standard) are easier to model than pre-money SAFEs because the cap includes the SAFE amount itself.

Industry benchmarks

Typical pre-seed SAFE caps: $3-8M. Seed SAFE caps: $8-20M. Standard discount: 20%. Post-money SAFEs became the YC standard in 2018. Most founders raise $500K-$2M in total SAFE financing before a priced round.

Key terminology

📝SAFE 🔢Pre-money Valuation