Total Equity Calculator

Calculate Total Equity



Formula

To calculate the Total Equity (TE):

\[ TE = A - L \]

Where:

What is Total Equity?

Total equity is defined as the difference between the total assets value and the total liabilities value. It represents the net worth of a company or individual, indicating how much of the assets are owned free and clear of any debts or obligations.

Example Calculation

Let's assume the following values:

Using the formula:

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

The Total Equity is $200,000.