Calculate the new shares required for a target stake

Solve the post-issuance equation

Let D be the opening denominator, h the recipient’s existing holdings, t the target as a fraction and x the new shares. The equation is (h + x) / (D + x) = t, so x = (t × D − h) / (1 − t). New shares appear in both numerator and denominator. A 20% target is t = 0.20, while the form takes 20 in its % field.

With D = 1,000,000 and h = 0, the 20% target needs 250,000 shares. Closing outstanding shares become 1,250,000; 250,000 / 1,250,000 = 20%. At EUR 4 per share, cash is EUR 1,000,000. Issuing only 200,000 would yield 16.6667%, not 20%.

An existing holder needs a different number

For 300,000 already held and a 40% target, x = (0.4 × 1,000,000 − 300,000) / 0.6 = 166,666.666… shares. The recipient then holds 466,666.666… out of 1,166,666.666… shares. At EUR 4, the theoretical cash amount is EUR 666,666.666….

The calculator displays up to eight decimal places but does not round the transaction to whole shares. A practical allocation may require an explicit whole-share policy and a recomputed achieved percentage. It would be misleading to show rounded shares while claiming the exact target.

Download the synthetic model, explicitly import it under Model and open Ownership → Equity Transactions in Advanced. Import creates a separate model. The calculators above do not change saved models.

Choose Basic or Fully Diluted deliberately

Basic uses opening outstanding shares. In this simplified calculator, Fully Diluted adds the stated dilutive instruments to that denominator; all new shares go to the recipient. Additional instruments are assumed to belong to others. Security rights, vesting and conversion terms require a detailed Ownership model.

With 100,000 additional instruments, a new investor targeting 20% Fully Diluted needs 275,000 shares: 275,000 / 1,375,000 = 20%. Basic ownership is then about 21.568627%. A 20% Basic target still needs 250,000 shares but gives only about 18.518519% Fully Diluted.

Treat edge states honestly

A target below the recipient’s current percentage cannot be achieved by issuing more shares solely to that recipient. A 100% target has no finite solution while other holders remain. Zero opening shares, non-finite counts and holdings above outstanding shares are invalid in this calculator. At the current percentage, zero new shares is a valid no-change case.

Price is optional. Leaving it blank preserves the share calculation but makes funding cash unavailable; it does not mean zero cash. This is issuance arithmetic under a selected denominator, not legal allocation advice, SAFE conversion, valuation of security rights or execution of a financing round.

Additional reconciled variants

These native files reproduce the discussed variants separately: 20% Fully Diluted target; 20% Basic with other dilutive instruments; Optional price left blank.

Related decisions and model reference

For adjacent questions: Funding-Round Dilution: Price, New Shares and Ownership; Basic vs Fully Diluted Ownership: Which Denominator?; Cap Table Model: Build and Reconcile Ownership; Pre-Money vs Post-Money: Interpret the Valuation Quote.

For the exact controls and source behavior, use Primary issuance and target ownership and Funding rounds and pre/post-money.