How do I remove GST from a tax-inclusive price?

Base = total ÷ (1 + rate/100). For an 18% inclusive price of ₹1,180, the base is ₹1,000 and GST is ₹180. The calculator's 'remove GST' mode does this automatically and shows the CGST/SGST split.

When should I charge CGST+SGST vs IGST?

CGST+SGST (each half the rate) applies to intra-state supply (seller and buyer in the same state). IGST (full rate) applies to inter-state supply or imports. The place of supply, not the seller's location, decides this.

Is a composition dealer better for me?

Composition pays a flat 1–6% on turnover, files one annual return, and cannot collect GST or claim ITC. It suits small businesses with low input costs; if you buy heavily taxable inputs, the regular scheme usually costs less.

Can I claim input tax credit on everything?

No — ITC is blocked on specified items (food, travel, employee benefits, motor vehicles in some cases) and must be matched with the supplier's filing. Unmatched credit is reversed with interest under Section 16.

What are the current GST rates?

Since 22 September 2025 (GST 2.0), the standard slabs are 5% and 18%, with 40% on demerit/luxury goods. Special rates remain: 0% exempt, 3% on gold and jewellery, 0.25% on rough diamonds. The old 12% and 28% slabs are abolished.

What is the single biggest lever in the Startup Equity Dilution?

The biggest lever is usually pre-money valuation. In most cases a 10% change there moves the final figure more than any other input. Start there when you are trying to improve the outcome.

Should I use the Startup Equity Dilution before or after talking to an adviser?

Use it before — that is the point. Run the numbers, understand the range, and go into the conversation knowing what to expect. Bring the printed breakdown with you; it makes it much harder for anyone to quote you an unfair number.

How is the Startup Equity Dilution calculated?

It uses the GST 2.0 rate as a percentage of base, with CGST/SGST or IGST split by supply type. With pre-money valuation ₹10,000,000, investment amount ₹2,000,000, the tool shows Post-money valuation of ₹1,20,00,000. Change any input and the breakdown updates immediately, so you can see exactly which assumption moves the number most.

What pre-money valuation should I enter in the Startup Equity Dilution?

Enter your actual pre-money valuation — the default is only a starting example. For most people, pre-money valuation of the default shown on the page is realistic; if yours differs, the result will too. The investment amount input is usually the second-most important lever.

What rate assumption does the Startup Equity Dilution use by default?

The default rate is shown in the input label and in the assumption note. For market-linked products it is an assumption you should change; for fixed-income schemes it is the latest notified rate, which may change on the next review date.

What is the difference between the Startup Equity Dilution and Working Capital & Current Ratio Calculator?

The Startup Equity Dilution focuses on tax liability and input credit; the Working Capital & Current Ratio Calculator is for a different but adjacent decision. Use both together — many people run the Startup Equity Dilution first, then check Working Capital & Current Ratio Calculator to see the full picture. On this Startup Equity Dilution page, try adjusting the pre-money valuation input — it is the quickest way to see how the final figure moves for your own numbers.

What rate assumption does the Startup Equity Dilution use by default?

The default rate is shown in the input label and in the assumption note. For market-linked products it is an assumption you should change; for fixed-income schemes it is the latest notified rate, which may change on the next review date. On this Startup Equity Dilution page, try adjusting the investment amount input — it is the quickest way to see how the final figure moves for your own numbers.

Is the default pre-money valuation still correct for October 2026?

The default reflects the latest notified rate as of October 2026. Rates change — especially for government small savings, which are reset quarterly, and for bank loans linked to the repo rate. Always verify the current rate on the official source before making a decision. On this Startup Equity Dilution page, try adjusting the pre-money valuation input — it is the quickest way to see how the final figure moves for your own numbers.

Should I use the Startup Equity Dilution before or after talking to an adviser?

Use it before — that is the point. Run the numbers, understand the range, and go into the conversation knowing what to expect. Bring the printed breakdown with you; it makes it much harder for anyone to quote you an unfair number. On this Startup Equity Dilution page, try adjusting the investment amount input — it is the quickest way to see how the final figure moves for your own numbers.

Why does my result change when I adjust the investment amount?

The investment amount affects the result because it changes the compounding or slab calculation directly. A small move in investment amount can compound to a large difference over time — run it at both a conservative and aggressive value to see the range. On this Startup Equity Dilution page, try adjusting the pre-money valuation input — it is the quickest way to see how the final figure moves for your own numbers.

Business & GST

Startup Equity Dilution Calculator

Founder/investor stake after a funding round from pre-money and investment.

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How this Startup Equity Dilution Calculator works

What is Equity Dilution?

The Equity Dilution is built for Indian business owners, entrepreneurs, freelancers, and finance professionals who need quick, accurate calculations for day-to-day business decisions. Running a business in India involves navigating GST, working capital cycles, profit margins, break-even points, and various compliance requirements. Making these calculations manually or relying on spreadsheets is error-prone and time-consuming.

This calculator gives you reliable numbers fast, so you can focus on running your business rather than wrestling with formulas. Whether you are pricing a product, filing GST returns, evaluating a new investment, or checking your business's financial health, having accurate figures at your fingertips leads to better decisions and fewer costly mistakes.

How to Use This Equity Dilution Calculator

Enter your values. Adjust the sliders or type directly into the number fields. All fields use Indian Rupees (₹) and percentages where applicable. The Equity Dilution Calculator updates instantly as you change any value — no separate calculate button needed.
Focus on the highlighted result. The result card shown in the accent colour is the primary output of this calculation. Read the supporting tiles for context.
Adjust the key inputs to see how sensitive the Equity Dilution Calculator result is.
Try a "best case" and "worst case" scenario to understand the range of outcomes.
Use the print button to save a copy of your calculation for future reference.
Save or print. Use the "Save / Print as PDF" button to keep a record of your calculation for your personal files or to share with your financial adviser.

Formula & Calculation Logic

Equity Dilution Logic: This calculator uses standard financial formulae appropriate for the calculation type. Inputs are processed in real-time using client-side JavaScript, with results displayed instantly. All calculations follow Indian regulatory conventions and financial year rules where applicable. The specific mathematical approach depends on the nature of the calculation — compound interest for growth projections, amortisation schedules for loans, statutory formulae for government schemes, and current tax slab rates for tax estimates.

All calculations on FinCal Hub run entirely in your browser using JavaScript. Your inputs are never sent to a server, and nothing you type is stored anywhere. This approach ensures your financial privacy while giving you instant results. The calculations follow Indian numbering conventions (lakhs and crores) and regulatory rules applicable for FY 2026-27 where relevant.

Where a calculator involves simplifying assumptions — such as constant returns on market-linked investments or a fixed interest rate for the full tenure of a floating-rate loan — these are clearly stated in the assumptions section below the results. Financial planning always involves uncertainty, and our calculators are designed to give you a reliable starting estimate rather than a guaranteed prediction.

Real-Life INR Examples

Example 1 — GST calculation: A business selling goods worth ₹1,00,000 at an 18% GST rate must collect ₹18,000 in GST from the customer, making the total invoice value ₹1,18,000. If the business had already paid ₹8,000 in GST on its purchases (input tax credit), the net GST payable to the government is ₹10,000.

Example 2 — Break-even analysis: A café with fixed costs of ₹50,000 per month (rent, salaries, utilities) and an average contribution margin of 40% per order needs ₹1,25,000 in monthly revenue just to break even. Every rupee of sales beyond that contributes directly to profit.

Example 3 — Working capital: A small manufacturing business with ₹20 lakh in annual revenue, 45-day inventory holding period, 30-day receivables period, and 15-day payables period needs approximately ₹3.25 lakh in working capital to fund its operating cycle comfortably.

Common Mistakes to Avoid

Confusing revenue with profit. Many new business owners celebrate top-line sales without accounting for all costs — COGS, overheads, salaries, marketing, taxes — and wonder why there is no cash left at the end of the month.
Not filing GST returns on time. Late GST returns attract late fees of ₹20 per day (CGST + SGST) per return, plus interest on any outstanding tax liability. A few days' delay across multiple months can add up significantly.
Underpricing products by forgetting indirect costs. A product that costs ₹100 in materials and labour may need to sell for ₹200+ to cover rent, marketing, payment gateway fees, returns, and taxes — and still leave a profit margin.
Ignoring working capital needs. A business can be profitable on paper but go bankrupt because cash is tied up in inventory and receivables. Monitor your cash conversion cycle closely.
Mixing personal and business finances. Using the same bank account for personal and business transactions makes accounting difficult, complicates tax filing, and erodes your ability to judge the true performance of the business.

When to Use (and When Not To)

Use the Equity Dilution Calculator when:

You need a quick number for pricing, quoting, or a business decision
You want to test the financial viability of a new product or strategy using the Equity Dilution Calculator
You are preparing for a GST filing, loan application, or investor discussion
You want to understand how sensitive your business is to changes in revenue or costs

Do not rely solely on this Equity Dilution Calculator when:

The decision involves complex legal or regulatory factors requiring professional expertise
Large sums of money or irreversible commitments are at stake
Your personal situation has unusual features that a general calculator cannot capture
You need personalised advice considering your complete financial picture

In these cases, use the Equity Dilution Calculator as a starting point, then consult a qualified CA, SEBI-registered investment adviser, or financial planner before deciding.

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