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.

​ Was this Helpful? YES  NO 9 people found this helpful.

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 7 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 6 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