Crowdfunding Return Calculator

Value a crowdfunding stake properly, including the odds that it goes to zero.

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Crowdfunding Return Calculator

Enter the investment, equity, exit valuation and failure probability.

Expected value of the investment
β€”
Enter values above
Gross proceeds at exit
β€”
Net proceeds after fees
β€”
Multiple if it succeeds (MOIC)
β€”
Expected multiple
β€”
Expected IRR
β€”

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Investment amount ($)10000
Equity offered (%)0.5
Company valuation at investment ($)2000000
Projected exit valuation ($)20000000
Years to exit6
Platform and legal fees (%)5
Probability of failure (%)40
ResultValue
Expected value of the investment$57,000.00
Gross proceeds at exit$100,000.00
Net proceeds after fees$95,000.00
Multiple if it succeeds (MOIC)9.5x
Expected multiple5.7x
Expected IRR33.65%

Values shown are produced by this page in your browser; change any input to update them.

How to use the Crowdfunding Return Calculator

  1. Investment amount ($) β€” default 10000
  2. Equity offered (%) β€” default 0.5
  3. Company valuation at investment ($) β€” default 2000000
  4. Projected exit valuation ($) β€” default 20000000
  5. Years to exit β€” default 6
  6. Platform and legal fees (%) β€” default 5
  7. Probability of failure (%) β€” default 40
  8. Press Calculate to update the results instantly.

Frequently asked questions

Because most early-stage companies fail. A 20x headline return with a 40% chance of losing everything is worth far less than it appears, and the probability-weighted figure shows the honest expectation.
Treat them cautiously. The valuation is set by the company, not the market, and there is no secondary market to test it. Compare it with comparable rounds before investing.
Platform fees of 2–8% are common, and your stake can be diluted by later rounds. If later rounds are likely, reduce the equity figure to reflect the diluted position.

Sources & references