Liquidation preference calculator
Set the preference multiple, the participation, and a sale price. See what the investor and the common holders get, and where the investor converts.
Simulator
One investor, one sale
Pick the preference terms and a sale price. See how the money divides between the investor and the common holders.
Participation
Preference multiple
- Investor gets
- $10M
- 20% as converted is $8M
- Common gets
- $30M
- $40M − $10M
- Common's part
- 75%
- Common owns 80%
- Converts at
- $50M
- $10M ÷ 20%
How this sale divides
- Investor
- Common holders
Payout at every sale price
- Investor
- Common holders
20% as converted is $8M, less than the $10M preference. The investor keeps the preference, and common gets the other $30M. The investor converts only at a sale price more than $50M.