Enter the total amount of assets and the total amount of stockholder’s equity. The calculator will determine the equity multiplier.

## Equity Multiplier Formula

The following equation can be used to calculate an equity multiplier.

EM = A / SE

• Where EM is the equity multiplier
• A is the total assets
• SE is the stockholder’s equity

## Equity Multiplier Definition

An equity multiplier is a measure of how the total assets of a company reflect on the total stockholder’s equity. In general, a larger ratio will indicate either less stockholder’s equity or more total assets.

## Equity Multiplier Example

How to calculate an equity multiplier?

1. First, determine the total assets.

Determine the value of all of the assets of a company.

2. Next, determine the total stock holder’s equity.

Calculate the total value of the stock holder’s equity.

3. Finally, calculate the equity multiplier.

Calculate the equity multiplier with the equation above.

## FAQ

What is an equity multiplier?

An equity multiplier is a measure of the ratio of the total asset value of a business and the total equity owned by the stockholders.