Tools · Ownership

Share Dilution Calculator

Enter current shares outstanding and new shares issued (secondary offering, SBC, or convertibles). See how much your ownership stake shrinks if you don't buy more.

Dilution %
Your ownership after (if you buy no more)
This ignores how the proceeds are used. Capital raised is a naive estimate (new shares × price) — it doesn't account for underwriting discounts, warrants, or a price that moves during the raise.

How to read this number

Dilution percent tells you how much of the newly enlarged share count the new shares represent. Ownership after tells you what happens to a holder who does nothing — their stake shrinks even though they didn't sell anything. Whether that trade-off is worth it depends entirely on what the company does with the capital raised, which this calculator doesn't and can't evaluate for you.

Formula & assumptions

Dilution % = New Shares / (Current Shares + New Shares) Ownership after (no additional buying) = 1 / (1 + New Shares / Current Shares) Approx. capital raised (naive) = New Shares x Price Capital raised is a rough estimate only, shown when you enter a price. It assumes every new share sells at the current price, which is rarely exactly true.

Common questions

What is stock dilution?

Stock dilution happens when a company issues new shares, which reduces each existing shareholder's percentage ownership of the company unless they buy proportionally more shares.

How do you calculate dilution percentage?

Dilution percentage equals new shares divided by the total of current shares plus new shares. A holder who does not buy more sees their ownership percentage fall by roughly that amount.

Is dilution always bad for shareholders?

Not necessarily. Dilution reduces ownership percentage, but whether it is good or bad for a holder also depends on how the company uses the capital raised from issuing those shares.

Go deeper

Want the full picture on a dilution event — not just the math? Run a research pass in AlphaLens.

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Disclaimer: NorrisAI AlphaLens tools are educational calculators only. They are not investment advice, a recommendation to buy or sell any security, or a substitute for a financial advisor. NorrisAI is not a registered investment adviser, broker-dealer, or fiduciary. Results are estimates based on the numbers you enter and the assumptions shown. Markets, taxes, fees, and company fundamentals change. You are solely responsible for your decisions.
Educational calculator only. Not investment advice. — NorrisAI AlphaLens
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