Equity = Assets – Liabilities
Find the total value of all assets
Find the total value of all liabilities
Subtract liabilities from assets
For a business, use the balance sheet values
For a home, use market value minus mortgage balance
For an investment, use current market value minus any debt tied to it
For a company, equity can also mean shareholders’ equity
Shareholders’ equity = Total assets – Total liabilities
If there are multiple owners, divide equity according to ownership percentages
Recalculate equity whenever asset values or debts change