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Question by  scott63 (140)

How do you calculate equity?

 
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Answer by  pjsfb (221)

Equity = The value of total assets (everything the company owns) minus total debt (everything the company owes to other parties or creditors).

 
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Answer by  timeismoney (994)

To calculate how much equity you have in your home, for example, you would begin with the market value of your home and then subtract the outstanding loan balance. The difference is the equity you have in the home. Say your home is worth $100,000 and you owe $70,000. The equity is the difference of $30,000.

 
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