Choose your...

Country Language
70% off
for 3 months
Buy now
FINAL DAYS!
SALE
70% off
for 3 months
Buy now
Get your
business
organised
Buy now
70% off
for 3 months
Buy now
SALE Save 70% for 3 months Buy now
Get your
business
organised
Buy now
DON'T MISS OUT
Buy now and get 70% off for 3 months Claim offer
DON'T MISS OUT
Claim offer
SALE
Buy now and
save 50% off today
See plans + pricing
50 %off for 3 months
50 %off for 12 months
  • Invoices
  • Expenses
  • Reports

What is Equity?

Equity (Definition)

Equity can refer to the amount of money that an owner and/or shareholders has invested in a business, and it can also refer to the potential value of the business. For example, the value that would be returned to the owner or shareholders if all assets were liquidated, and all debts paid off. Essentially it is the net worth of the business. To calculate the equity of a business, you take the total assets minus its total liabilities. For example: if the business has $5,000 worth of assets, owes $2,000 for a bank loan, and made $1,000 this month. The current equity for the business is $4,000 ($5,000 - $2,000 + $1,000 + $4,000). Equity is often used to calculate the health of a business.

Ready to run your business better with QuickBooks Online?