Conversion of a SAFE at next round. The SAFE Note Calculator takes safe investment, valuation cap, discount, pre-money valuation of the priced round, price per share in the priced round and returns shares the safe converts into plus conversion price per share, ownership after conversion (approx.), method that applied. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Startup metrics are about the efficiency of growth: how much it costs to win and keep customers, how fast recurring revenue compounds, and how long the cash lasts. Investors read these numbers before they read the pitch. Use the worked example below to check the maths against your own figures.
How the SAFE Note Calculator works
A SAFE converts at the next priced round at whichever gives the investor more shares: the cap price or the discounted price. The ownership shown is approximate (pre-money shares plus the SAFE shares).
Worked example
With the example values (safe investment of $500,000, valuation cap of $8,000,000, discount of 20%, pre-money valuation of the priced round of $12,000,000, price per share in the priced round of $2), the shares the safe converts into is 375,000; conversion price per share $1.33, ownership after conversion (approx.) 5.88%, method that applied Valuation cap. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Post-money SAFEs and option pool changes are not modelled.
Related Calculators
Frequently Asked Questions
How is shares the safe converts into calculated?
conversion price = the lower of round price × cap ÷ pre-money and round price × (1 − discount); shares = investment ÷ conversion price.
Which figures do I need?
Safe investment, valuation cap, discount, pre-money valuation of the priced round, price per share in the priced round. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What do investors consider healthy?
Common benchmarks: LTV:CAC above 3, CAC payback under 12–18 months, net revenue retention above 100%, monthly churn under 2% for SMB and under 1% for enterprise, and at least 12–18 months of runway.
What assumptions does this calculator make?
Post-money SAFEs and option pool changes are not modelled.
