What is my shareholders’ equity?
Enter total assets and total liabilities from a balance sheet. Or add up the accounts in its equity section, and the calculator takes off any treasury stock.
- Shareholders’ equity
- $100,000.00
Shareholders’ equity is $100,000.00, the amount that belongs to the owners.
Shareholders’ equity: $100,000.00. Shareholders’ equity is $100,000.00, the amount that belongs to the owners.
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes shareholders’ equity as total assets minus total liabilities, or from the equity accounts: stock, paid-in capital, retained earnings and treasury stock.
Example with the default inputs (Start from Assets and liabilities, Total assets $250,000.00, Total liabilities $150,000.00): Shareholders’ equity is $100,000.00, the amount that belongs to the owners.
Method: From the balance sheet: shareholders’ equity = total assets − total liabilities. From the equity accounts: shareholders’ equity = preferred stock + common stock + additional paid-in capital + retained earnings + accumulated other comprehensive income − treasury stock.
- All amounts are from the same balance sheet date.
- Treasury stock is entered at cost as a positive amount; the calculator takes it off.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up.
Worked examples
Each example is checked against the calculator on every build.
- Start from Assets and liabilities, Total assets $250,000.00, Total liabilities $150,000.00 gives Shareholders’ equity $100,000.00.Source: 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; OpenStax, Principles of Finance, 6.4 Solvency Ratios (Clear Lake Sporting Goods: total assets $250,000, liabilities $100,000 + $50,000, stockholder equity $100,000). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios: 250,000 − 150,000 = 100,000
- Start from Equity accounts, Preferred stock $1,000,000.00, Common stock $1,200,000.00, Additional paid-in capital $16,800,000.00, Retained earnings $3,670,000.00, Treasury stock $240,000.00 gives Shareholders’ equity $22,430,000.00, Paid-in capital $19,000,000.00.Source: OpenStax, Principles of Financial Accounting, 14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock (stockholders’ equity sections; treasury stock reduces total equity). https://openstax.org/books/principles-financial-accounting/pages/14-2-analyze-and-record-transactions-for-the-issuance-and-repurchase-of-stock (Wilson Enterprises: total $22,670,000 less treasury stock $240,000 = $22,430,000)
- Start from Equity accounts, Preferred stock $8,000.00, Common stock $15,000.00, Additional paid-in capital $107,000.00, Retained earnings $31,000.00, Treasury stock $20,000.00 gives Shareholders’ equity $141,000.00, Paid-in capital $130,000.00.Source: OpenStax, Principles of Financial Accounting, 14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock (stockholders’ equity sections; treasury stock reduces total equity). https://openstax.org/books/principles-financial-accounting/pages/14-2-analyze-and-record-transactions-for-the-issuance-and-repurchase-of-stock (Duratech: total $161,000 less treasury stock $20,000 = $141,000)
- Start from Assets and liabilities, Total assets $410,500.25, Total liabilities $455,000.75 gives Shareholders’ equity -$44,500.50.Source: 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
- Start from Equity accounts, Common stock $500,000.00, Additional paid-in capital $120,000.00, Retained earnings -$35,000.00, Accumulated other comprehensive income -$15,000.00, Treasury stock $2,500.50 gives Shareholders’ equity $567,499.50, Paid-in capital $620,000.00.
How it works
From assets and liabilities:
- Shareholders' equity = total assets − total liabilities
From the equity accounts:
- Paid-in capital = preferred stock + common stock + additional paid-in capital
- Shareholders' equity = paid-in capital + retained earnings + accumulated other comprehensive income − treasury stock
Rules:
- Assets, liabilities, stock, paid-in capital and treasury stock are $0 or more. Retained earnings and accumulated other comprehensive income may be negative. Preferred stock, additional paid-in capital, accumulated other comprehensive income and treasury stock are optional; an empty box counts as $0.
- Each amount is at most $1 quadrillion in size.
- Equity may come out negative (a shareholders' deficit); the calculator shows it.
- The arithmetic is exact on the decimals you type. Money shows to the cent, with halves rounded up (away from 0).
Assumptions
- All amounts are from the same balance sheet date.
- Enter treasury stock at cost as a positive amount; the calculator subtracts it.
Worked examples by hand
Clear Lake Sporting Goods. Total assets $250,000; liabilities $100,000 current plus $50,000 long-term. Equity = 250,000 − 150,000 = $100,000.
Wilson Enterprises. Preferred stock $1,000,000 + common stock $1,200,000 + additional paid-in capital $16,800,000 = $19,000,000 of paid-in capital. Plus retained earnings of $3,670,000 is $22,670,000. Less treasury stock of $240,000: equity = $22,430,000.
Duratech. Preferred stock $8,000 + common stock $15,000 + paid-in capital $37,000 on preferred and $70,000 on common = $130,000. Plus retained earnings of $31,000 is $161,000. Less treasury stock of $20,000: equity = $141,000.
A shareholders' deficit. Assets $410,500.25 and liabilities $455,000.75: equity = −$44,500.50.
A deficit in retained earnings. Common stock $500,000 + paid-in capital $120,000 − a $35,000 accumulated deficit − a $15,000 loss in other comprehensive income − $2,500.50 of treasury stock = $567,499.50.
Other questions people ask
What is shareholders' equity?
Shareholders' equity, also called stockholders' equity, owners' equity or book value, is what would be left for the owners if a company sold all its assets and paid off all its liabilities. It is the money owners put in plus the earnings the company has kept.
How do I calculate shareholders' equity?
Subtract total liabilities from total assets. Clear Lake Sporting Goods had total assets of $250,000 and total liabilities of $150,000, so its stockholders' equity was $100,000.
How do I calculate stockholders' equity from the equity accounts?
Add preferred stock, common stock, additional paid-in capital, retained earnings and accumulated other comprehensive income, then subtract treasury stock. Wilson Enterprises had $22,670,000 before $240,000 of treasury stock, so its total stockholders' equity was $22,430,000.
Why is treasury stock subtracted?
Treasury stock is the company's own shares that it bought back. The money paid went out to shareholders, so treasury stock is a contra-equity account: it has a debit balance and reduces total equity.
Can shareholders' equity be negative?
Yes. When liabilities are more than assets, often after years of losses or large buybacks, equity is negative and is called a shareholders' deficit. Assets of $410,500.25 and liabilities of $455,000.75 give equity of −$44,500.50.
Is shareholders' equity the same as market value?
No. Equity is a book value from the balance sheet, mostly based on historical cost. The market value of the shares (the market capitalization) is set by investors and is often far higher or lower.