Choose a business equity solve, return on total equity, or home equity. Optional measures include common and tangible book equity, per-share book values, retention estimates and balance-based borrowing capacity.
Total Equity Formula
The following formula can be used to calculate a total equity.
TE = A - L
- Where TE is the total equity ($)
- A is the total assets ($)
- L is the total liabilities ($)
To calculate total equity, subtract the total liabilities from the total assets.
Total Equity Definition
Total equity is defined as the difference between the total assets value and the total liabilities value.
Total Equity Example
How to calculate total equity?
- First, determine the total assets.
Measure the total assets value.
- Next, determine the total liabilities.
Calculate the value of all liabilities.
- Finally, calculate the total equity.
Calculate the total equity using the formula above.
FAQ
What is total equity?
Total book equity is assets minus liabilities at a given accounting date; it may be negative and is not the same as market value.
