Enter the total assets and total liabilities into the calculator to determine the total equity.

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?

  1. First, determine the total assets.

    Measure the total assets value.

  2. Next, determine the total liabilities.

    Calculate the value of all liabilities.

  3. Finally, calculate the total equity.

    Calculate the total equity using the formula above.

FAQ

What is total equity?

Total equity is the total monetary value a business owns after all liabilities are taken into account.

total equity calculator
total equity formula