Owner's Equity Calculator

Calculate Owner's Equity



Formula

To calculate the Owner's Equity (\(E\)):

\[ E = A - L \]

Where:

What is Owner's Equity?

Equity is a measure of any person's assets minus their liabilities. Owner's equity is simply this value with respect to the owner of a company.

Example Calculation 1

Let's assume the following values:

Using the formula:

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

The Owner's Equity is $300,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ E = 1,000,000 - 400,000 = 600,000 \text{ dollars} \]

The Owner's Equity is $600,000.