SAFE Note Calculator

How to Use This Calculator

1. Enter SAFE Investment, Valuation Cap, Discount %, and Series A Pre-Money.
2. Conversion valuation, effective price, and ownership % appear instantly.
3. Use Cap Only or Cap + Discount tabs for specific SAFE structures.
4. Use SAFE Stack to model two SAFEs converting simultaneously.
5. Switch to Professional for three Series A scenarios and founder dilution impact.

Formula

Example

Frequently Asked Questions

• What is a SAFE note? ▼
  A SAFE (Simple Agreement for Future Equity), created by Y Combinator, is an investment instrument where investors give money now in exchange for equity later, at the next priced round. Unlike a convertible note, a SAFE has no interest rate or maturity date.
• How does a valuation cap work? ▼
  The valuation cap is the maximum valuation at which a SAFE converts. If the cap is $5M and Series A is at $15M pre-money, the SAFE converts as if the valuation were $5M — giving the investor more shares than Series A investors receive for the same money.
• How does the discount work? ▼
  The discount (typically 15–25%) gives the SAFE investor a lower price than Series A investors. If Series A price implies a $12M valuation and discount is 20%, the SAFE converts as if at $9.6M valuation. When both cap and discount exist, the investor gets whichever is lower (more favorable).
• What is the difference between pre-money and post-money SAFE? ▼
  Pre-money SAFE (older): the investor's ownership is calculated from the pre-money valuation, so it gets diluted when the option pool is created. Post-money SAFE (current YC standard): ownership % is locked in at conversion — $200K on a $5M cap = exactly 4%, regardless of option pool.
• What is MFN (Most Favored Nation) in a SAFE? ▼
  An MFN provision means the SAFE holder gets to adopt the terms of any future SAFE that is more favorable. If a later investor gets a lower cap or larger discount, the MFN SAFE holder can match those terms.

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