Net New Equity Calculator

How to Use the Calculator

1. Enter the Total Assets of your company in the first input field. This should include all resources owned by the company, such as cash, accounts receivable, inventory, property, plant, and equipment.
2. Enter the Total Liabilities of your company in the second input field. This should include all obligations owed by the company, such as loans, accounts payable, and other debts.
3. Click the Calculate button to compute the net new equity.
4. The result will be displayed as Net New Equity, which represents the company's net worth.

Understanding Net New Equity

Net New Equity is a key financial metric that represents the difference between a company's total assets and total liabilities. It indicates the company's net worth or the value that would remain if all liabilities were paid off from the company's assets.

Positive net new equity indicates that the company's assets exceed its liabilities, suggesting financial health. Negative net new equity suggests that the company's liabilities exceed its assets, which may indicate financial distress.

Example

If a company has total assets of $500,000 and total liabilities of $300,000, the net new equity would be:

$500,000 (Total Assets) - $300,000 (Total Liabilities) = $200,000 (Net New Equity)