Liquidation Preference Waterfall Calculator
Free Liquidation Preference Waterfall Calculator distributes exit proceeds across Series A, B, C preferences. Model participating, non participating, and capped preferences to see founder versus investor outcomes at exit.
How It Works
Enter the inputs described in each field label for Liquidation Preference Waterfall Calculator.
Liquidation preference waterfalls distribute exit proceeds by seniority, participation rights, and caps. Pair with Equity Dilution and ESO Value on portfolios.tools for cap table and employee equity context.
Review proceeds by series and common share outcome. Adjust exit value to find preference crossover points. Test participating versus non participating structures for different exit scenarios.
Bookmark the page for quick reruns without installing software.
Step by step
- Open Liquidation Preference Waterfall Calculator and enter your current inputs.
- Review calculated outputs and summary tables.
- Adjust assumptions and compare scenarios side by side.
Worked example
Adjust one input at a time to see sensitivity.
Common mistakes
Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks.
The Formula
Step 1: Pay senior prefs (investment × multiple)
Step 2: Participating: share remaining pro rata
Non participating: choose pref or conversion
Step 3: Common receives residual.
Model each series separately. Participating prefs with caps require iterative comparison to as converted common.
Limitations and assumptions
Model each series separately. Participating prefs with caps require iterative comparison to as converted common. Liquidation Preference Waterfall Calculator does not replace personalized advice.
Key terms
- What does Liquidation Preference Waterfall Calculator measure
- Liquidation preference waterfalls distribute exit proceeds by seniority, participation rights, and caps.
- How is the formula applied
- The formula block on this page shows every intermediate step so you can audit the math against textbook definitions.
- Model assumption
- Interpret results in context rather than as automatic buy, sell, or accept signals.
Compare alternatives
Pair with Equity Dilution and ESO Value on portfolios.
FAQ
What does Liquidation Preference Waterfall Calculator measure?
Liquidation preference waterfalls distribute exit proceeds by seniority, participation rights, and caps. This calculator runs entirely in your browser on portfolios.tools.
How is the formula applied in Liquidation Preference Waterfall Calculator?
Model each series separately. Participating prefs with caps require iterative comparison to as converted common.
How should I interpret Liquidation Preference Waterfall Calculator results?
Liquidation preference waterfalls distribute exit proceeds by seniority, participation rights, and caps.
What are common input mistakes with Liquidation Preference Waterfall Calculator?
Stress test with conservative and optimistic inputs before acting. Document assumptions when sharing outputs with colleagues or lenders.
What are the limitations of Liquidation Preference Waterfall Calculator?
Model each series separately. Participating prefs with caps require iterative comparison to as converted common.
Related Tools
Pair with Equity Dilution and ESO Value on portfolios.tools for cap table and employee equity context.