owner's equity


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

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.

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

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

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owner-occupier capital net worth