Owner Equity Calculator

Calculate your business's owner equity by subtracting total liabilities from total assets

Input Parameters

Calculation Results

Calculation Formula

Owner Equity = Total Assets - Total Liabilities

Where:
Total Assets: All resources owned by the business (cash, equipment, inventory, etc.)
Total Liabilities: All debts and obligations of the business (loans, accounts payable, etc.)

Your Results

Total Assets: $0.00
Total Liabilities: $0.00
Owner Equity: $0.00

Owner Equity Calculator Usage Guide

Learn how to use the Owner Equity Calculator to assess your business's financial health

What is Owner Equity?

Owner Equity (also known as Shareholders' Equity for corporations) represents the net worth of your business. It's the amount that would remain if all your business's assets were liquidated and all its debts were paid off. A positive owner equity indicates that your business is worth more than its debts, while negative equity suggests the business owes more than it owns.

How to Use This Calculator

  1. Enter your Total Assets amount. This should include all physical and financial resources owned by your business, such as cash, accounts receivable, inventory, property, plant, and equipment.
  2. Enter your Total Liabilities amount. This should include all debts and obligations your business owes, such as loans, accounts payable, mortgages, and other financial obligations.
  3. Click the Calculate button to see your Owner Equity result.

Interpreting Your Results

A positive Owner Equity indicates financial stability, while negative equity may suggest financial distress. Business owners should regularly monitor their equity to track financial health over time.

Formula

Owner Equity = Total Assets - Total Liabilities

Example

If your business has total assets of $500,000 and total liabilities of $300,000, your owner equity would be $200,000 ($500,000 - $300,000).