Total Equity Calculator

Formula

To calculate the Total Equity (TE):

\[ TE = A - L \]

Where:

$TE$ is the Total Equity in dollars
$A$ is the Total Assets in dollars
$L$ is the Total Liabilities in dollars

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:

Total Assets ($A$) = $500,000
Total Liabilities ($L$) = $300,000

Using the formula:

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

The Total Equity is $200,000.