Enter the total assets and total liabilities of the owner into the calculator. The calculator will evaluate the owner’s equity. This calculator can also determine the assets or liabilities when given the other variables.
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Owner’s Equity Formula
The following formula is used to calculate an owner’s equity.
E = A - L
- Where E is the owner’s equity
- A is the total assets
- L is the total liabilities
To calculate owner’s equity, subtract the owner’s liabilities from total assets.
Owner’s Equity Definition
Equity is a measure of any person’s assets minus their liabilities. Owner’s equity is simply this value with respect to the owner of a company.
Owner’s Equity Example
How to calculate an owner’s equity?
- First, determine the total assets.
Calculate the total value of assets of the owner.
- Next, determine the total liabilities.
Calculate the total cost of liabilities of the owner.
- Finally, calculate the owner’s equity.
Calculate the owner’s equity using the formula above.
Owner’s equity is the difference between the value of assets and the cost of liabilities of an owner.