Enter the value of all assets and liabilities owned by shareholders to determine the shareholder’s equity.

## Shareholders Equity Formula

The following formula is used to calculate a shareholder’s equity.

SE = A -L
• Where SE is the shareholders’ equity
• A is the total assets owned by the shareholders
• L is the total liabilities owned by the shareholders

To calculate shareholders equity, subtract the total liabilities owned by shareholders from the total assets owned by shareholders.

## Shareholders Equity Definition

A shareholder’s equity is defined as the difference between the assets and liabilities owned by a shareholder.

## Shareholders Equity Example

How to calculate a shareholders equity?

1. First, determine the shareholders assets.

Calculate the value of the shareholders assets.

2. Next, determine the shareholders liabilities.

Calculate the value of a shareholders liabilities.

3. Finally, calculate the equity.

Calculate the shareholder’s equity with the equation above.

## FAQ

What is shareholders equity?

Shareholders equity is the total equity owned by shareholders. It is calculated by subtracting the total liabilities from the total assets.