Equity Dilution Calculator

Calculate Equity Dilution Percentage



Formula

To calculate the equity dilution percentage:

D = ((ES - NS) / ES) × 100

Where:

What is Equity Dilution?

Equity dilution is defined as the reduction in the value of a stock or asset due to the addition of new stocks into the total pool available. In other words, it measures how much the percentage reduction in value would be if a certain number of shares were issued. This is important for investors to understand as it affects the value of their holdings.

Example Calculation 1

Let's assume the following values:

Using the formula:

D = ((ES - NS) / ES) × 100 = ((1000 - 200) / 1000) × 100 = (800 / 1000) × 100 = 80%

Example Calculation 2

Let's assume the following values:

Using the formula:

D = ((ES - NS) / ES) × 100 = ((500 - 50) / 500) × 100 = (450 / 500) × 100 = 90%