How To Calculate Equity?

Equity = Total Assets – Total Liabilities

Find the value of all assets

Add all liabilities

Subtract liabilities from assets

Equity = Owner’s Capital + Retained Earnings – Drawings

Equity = Share Capital + Additional Paid-in Capital + Retained Earnings – Treasury Shares

Equity = Market Value of Shares – Debt, for a simple valuation estimate

Equity = Assets – Liabilities, for a balance sheet calculation

Equity = Current Home Value – Mortgage Balance, for home equity

Equity = Account Value – Margin Loan Balance, for investment equity

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