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 shareholders equity.

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

## Shareholders Equity Definition

A shareholders equity is defined as the different between the assets and liabilities owned by a shareholder.

## Shareholders Equity Example

How to calculate a shareholders equity?

**First, determine the shareholders assets.**Calculate the value of the shareholders assets.

**Next, determine the shareholders liabilities.**Calculate the value of a shareholders liabilities.

**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.