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