owner's equity

Definition

The amount of ownership an individual or company has in an asset. The formula is

Owner's Equity = Total assets - Total liabilities

For example, if a home is worth $200,000 and the owner owes the bank $150,000, the owner's equity is $50,000.

For a company, this is also called net worth or shareholders' equity or net assets.

Use owner's equity in a sentence

We had some owner's equity and I told my son that our business was going to be fine and work in the future.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

The owner's equity was high as the liabilities were low and the assets were exceedingly and extraordinarily high this quarter.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Jamie currently has $200,000 in owner's equity, as she purchased her home years ago for $220,000 and still owes the bank $20,000.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Related Terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
owner-occupier capital net worth