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.


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.

Shareholders Equity Calculator
Shareholders Equity Formula