How much do I dilute if I raise 500k on a convertible with a 2m cap?

The convertible's term sheet: "In the event that no [Event of Default, Equity Financing or Liquidity Event] has occurred prior to the Maturity Date, the Loan plus accrued interest ("Conversion Amount") will be converted into that number of Conversion Shares equal to the result obtained by dividing the Conversion Amount by the lower of:

• the result of the Fair Market Value divided by the Fully Diluted Capitalization immediately prior to the issue of Conversion Shares to the Lender; and
• the Conversion Cap divided by the Fully Diluted Capitalization immediately prior to the closing of the Equity Financing;

whichever gives the most Conversion Shares to the Lender."

So, with 8% interest/year, 24 months till maturity and 2m fair market value..

..I dilute 23%.