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Cost of raising capital calculator

Enter the amount of capital being raised and the percentage cost of raising it (legal, underwriting, platform fees). The calculator works out the cost and the net amount the company will actually receive.

Legal counsel, platform or underwriter fees, due diligence — typically 2–10% of the round, depends a lot on the method of raising

Result

Net proceeds

Cost of raising

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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.

How it is calculated

Cost of raising = capital amount × cost percentage ÷ 100. Net proceeds = capital amount − cost of raising. Even a successful raise doesn't hand the company the full nominal round size — only the amount left after the cost of organizing it.

The cost percentage varies a lot by method: a bank loan is usually cheaper than issuing bonds or shares, which require legal deal support, underwriting and compliance work — which is why this is an editable field, not a fixed figure.

This is a one-off cost of arranging the deal, not the ongoing price of using the money (loan interest or dividends to investors) — account for those separately when comparing the full cost of different funding sources.

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