Lismah Tools
Market Dilution Calculator
Calculate how issuing new shares changes an existing owner's percentage ownership.
Ownership Inputs
Enter the existing share structure and the number of new shares that will be issued.
How Market Dilution Works
Dilution occurs when a company issues additional shares and an existing shareholder does not receive enough of the new shares to maintain the same ownership percentage.
Your number of shares can remain exactly the same while your percentage ownership falls because the total number of outstanding shares increases.
This calculator shows both the change in percentage points and the relative percentage reduction in the owner's stake.
Example
Suppose a company has 1,000 existing shares and an owner holds 250 of them. The owner therefore holds 25% of the company.
If the company issues 500 additional shares and the owner receives none of them, there are now 1,500 total shares.
The owner's 250 shares now represent approximately 16.67% of the company.
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