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