Contributed Capital Calculator

Formula

The formula to calculate Contributed Capital (CC) is:

\[ \text{CC} = \text{TE} - \text{RE} \]

Where:

$ \text{CC} $ is the Contributed Capital ($)
$ \text{TE} $ is the total equity ($)
$ \text{RE} $ is the retained earnings ($)

What is Contributed Capital?

Contributed capital refers to the total value of cash and other assets that shareholders have directly invested in a company in exchange for stock. It is an important component of a company's total equity and represents the funds that have been provided by shareholders to support the company's operations and growth.

Example Calculation

Let's assume the following values:

Total Equity (TE) = $500,000
Retained Earnings (RE) = $200,000

Using the formula to calculate Contributed Capital:

\[ \text{CC} = 500,000 - 200,000 = 300,000 \]

The Contributed Capital (CC) is $300,000.