Use the calculator below to calculate your average monthly payment amount, APR, the equity you’ll be selling, and the total payback amount.

Definitions for each of the terms included in the calculator can be found at the bottom of this page.

## Definitions

Valuation Cap (Detailed explanation)

When calculating the percentage of equity that an investor will own as a result of an investment, valuation is the denominator. In the simplest version of this calculation, it’s “Dollars invested / value of company.” Such that if you invest \$10k, and the company is worth \$100k – the investor has purchased 10% of the company. Therefore, the valuation cap sets a maximum for the valuation of the company. Meaning that when running that same formula, there is a maximum, or cap, on how high it can be. Using the same example, let’s say the valuation cap is set to \$200k, but your company is really worth \$400k, when an investors’ note converts, their \$10k investment will be worth \$200k/\$10k (which equals 5%), as compared to converting at \$400k/\$10k (which equals 2.5%). Essentially, it guarantees a certain percentage of ownership for the investor.