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 ($)
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.