Calculator 10 • Bridge & Seed Financing
Convertible Note vs. SAFE Converter
Model how simple interest, months to conversion, valuation caps, and discount rates convert into Series A shares compared with a clean 0%-interest YC Post-Money SAFE.
1. Note / SAFE Terms
Accrued Note Interest
$180,000
Total: $1,680,000
Winning Trigger
Cap ($15.0M)
Discount eq: $20.0M
Note Investor Stake
11.20%
Pre-new-money slice
Post-Money SAFE Stake
10.00%
+1.20% extra Note dilution
Instrument Conversion Breakdown (10,000,000 Initial Shares)
| Metric | Convertible Note (Interest + Cap/Discount) | Post-Money SAFE (0% Interest) |
|---|---|---|
| Principal + Accrued Interest | $1,680,000 | $1,500,000 |
| Effective Conversion Valuation | $15,000,000 | $15,000,000 |
| Ownership Claim Before New Money | 11.20% | 10.00% |
| Implied Value of Converted Stake at Series A | $2,800,000 | $2,500,000 |
| Extra Equity Surrendered via Interest | $300,000 at Series A price | $0 (No interest) |