{
  "id": "book-value",
  "version": "073088b60788",
  "status": "published",
  "name": "Book Value Calculator",
  "question": "What is the book value?",
  "summary": "Computes the book value of a company (assets minus liabilities, less preferred equity) and per share, or the book value of an asset (cost minus accumulated depreciation).",
  "category": "finance",
  "subcategory": "investing",
  "url": "https://www.acalculator.org/finance/book-value-calculator",
  "markdown": "https://www.acalculator.org/finance/book-value-calculator.md",
  "kind": "function",
  "method": "Company: total equity = total assets − total liabilities; book value = total equity − preferred equity; book value per share = book value ÷ common shares outstanding. Asset: book value = original cost − accumulated depreciation.",
  "assumptions": [
    "Balance sheet amounts are book (historical cost) values from one date, not market values.",
    "Preferred equity is the amount that belongs to preferred stockholders on that date.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "of": {
        "title": "Book value of",
        "description": "A company, from its balance sheet, or one asset, from its cost and depreciation.",
        "type": "string",
        "enum": [
          "company",
          "asset"
        ]
      },
      "ta": {
        "title": "Total assets",
        "description": "Everything the company owns, from the balance sheet.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "tl": {
        "title": "Total liabilities",
        "description": "Everything the company owes, current and long-term.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "pe": {
        "title": "Preferred equity",
        "description": "The part of equity that belongs to preferred stockholders, taken off for common stockholders. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "sh": {
        "title": "Common shares outstanding",
        "description": "Shares of common stock held by investors, for the book value per share. Optional.",
        "type": "number",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      },
      "cost": {
        "title": "Original cost",
        "description": "What the asset cost, including shipping and setup to get it ready for use.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "ad": {
        "title": "Accumulated depreciation",
        "description": "All the depreciation charged on the asset so far.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "book": {
      "label": "Book value",
      "description": "For a company, total assets − total liabilities − preferred equity (the common stockholders’ equity). For an asset, original cost − accumulated depreciation.",
      "format": "money"
    },
    "perShare": {
      "label": "Book value per share",
      "description": "Book value ÷ common shares outstanding. Shown when you enter the shares.",
      "format": "money"
    },
    "equity": {
      "label": "Total equity",
      "description": "Total assets − total liabilities, before preferred equity is taken off.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "of": "company",
      "ta": 250000,
      "tl": 150000,
      "pe": 20000,
      "sh": 8000,
      "cost": 58000,
      "ad": 9600
    },
    "outputs": {
      "book": 80000,
      "perShare": 10,
      "equity": 100000
    },
    "text": "The book value is $80,000.00."
  },
  "examples": [
    {
      "given": {
        "of": "company",
        "ta": 250000,
        "tl": 150000,
        "pe": 20000,
        "sh": 8000
      },
      "expect": {
        "book": 80000,
        "perShare": 10,
        "equity": 100000
      },
      "source": "OpenStax, Principles of Finance, 6.5 Market Value Ratios (book value per share = (total equity − preferred equity) ÷ total shares outstanding; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios: (100,000 − 20,000) ÷ 8,000 = $10"
    },
    {
      "given": {
        "of": "asset",
        "cost": 58000,
        "ad": 9600
      },
      "expect": {
        "book": 48400
      },
      "source": "OpenStax, Principles of Financial Accounting, 11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs (book value = original cost − accumulated depreciation; Kenzie Company printing press). https://openstax.org/books/principles-financial-accounting/pages/11-3-explain-and-apply-depreciation-methods-to-allocate-capitalized-costs: 58,000 − 9,600 = 48,400"
    },
    {
      "given": {
        "of": "asset",
        "cost": 58000,
        "ad": 19200
      },
      "expect": {
        "book": 38800
      },
      "source": "OpenStax, Principles of Financial Accounting, 11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs (book value = original cost − accumulated depreciation; Kenzie Company printing press). https://openstax.org/books/principles-financial-accounting/pages/11-3-explain-and-apply-depreciation-methods-to-allocate-capitalized-costs: 58,000 − 19,200 = 38,800"
    },
    {
      "given": {
        "of": "company",
        "ta": 1500000,
        "tl": 500000,
        "sh": 30000
      },
      "expect": {
        "book": 1000000,
        "perShare": 33.333333333333336,
        "equity": 1000000
      },
      "source": "OpenStax, Principles of Finance, 6.5 Market Value Ratios (book value per share = (total equity − preferred equity) ÷ total shares outstanding; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios; hand calculation in content.mdx: 1,000,000 ÷ 30,000 = 33.33 (exact 100/3, Python Fraction)"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 6.5 Market Value Ratios: book value shows the value of the firm on paper; book value per share = (total equity − preferred equity) ÷ total shares outstanding; Clear Lake Sporting Goods (100,000 − 20,000) ÷ 8,000 = $10. https://openstax.org/books/principles-finance/pages/6-5-market-value-ratios (retrieved 2026-10-19)",
    "OpenStax, Principles of Financial Accounting, 11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs: book value is the asset’s original cost less accumulated depreciation; Kenzie Company printing press (cost $58,000; book value $48,400 after one year and $38,800 after two). https://openstax.org/books/principles-financial-accounting/pages/11-3-explain-and-apply-depreciation-methods-to-allocate-capitalized-costs (retrieved 2026-10-19)",
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: assets = liabilities + shareholders' equity. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-19)"
  ],
  "related": [
    "shareholders-equity",
    "depreciation",
    "stock",
    "net-worth"
  ],
  "changelog": []
}