SAFE Conversion Calculator

What does that SAFE actually convert into? Enter the cap, discount, and next-round pricing to see which term governs and exactly how much ownership changes hands.

Converts via
Cap
Effective valuation
$8.0M
Investor owns
6.25%
Without the SAFE terms
2.50%
The SAFE converts at whichever term gives the investor more ownership. Here the $8.0M cap wins: $500K converts as if the company were worth $8.0M, for 6.25% — versus 2.50% if they had simply invested at the $20.0M round price. That gap is the price of investing early.

SAFE FAQs

Does a SAFE convert at the cap or the discount?

Whichever produces the lower conversion price — i.e., more ownership for the investor. If the priced round values the company above the cap, the cap governs; if the round prices below the cap by more than the discount, the discount governs. A SAFE never applies both at once.

How much of my company does a post-money SAFE take?

For a standard post-money SAFE, ownership is simply investment divided by the valuation cap: $500K on an $8M post-money cap is 6.25%, locked in regardless of later SAFEs. That fixed percentage is why stacking many post-money SAFEs dilutes founders faster than most expect.

What happens to a SAFE if there's never a priced round?

It sits unconverted. In an acquisition, standard SAFEs give the investor the greater of their money back or what they'd receive converting at the cap. If the company dissolves, SAFE holders rank ahead of common stock but behind creditors — and typically recover little.

Related: SAFE, valuation cap, dilution calculator