# What is my shareholders’ equity?

Computes shareholders’ equity as total assets minus total liabilities, or from the equity accounts: stock, paid-in capital, retained earnings and treasury stock.

- Page: https://www.acalculator.org/finance/shareholders-equity-calculator
- JSON spec: https://www.acalculator.org/finance/shareholders-equity-calculator.json
- Version: 4e752000b5e4

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| from | Start from | Total assets and liabilities, or the accounts in the equity section of the balance sheet. |
| ta | Total assets | Everything the company owns, from the balance sheet. |
| tl | Total liabilities | Everything the company owes, current and long-term. |
| ps | Preferred stock | Preferred stock at par or stated value. Optional. |
| cs | Common stock | Common stock at par or stated value. |
| apic | Additional paid-in capital | What shareholders paid above par, for common and preferred stock. Optional. |
| re | Retained earnings | Earnings kept in the business since it began. Negative for an accumulated deficit. |
| aoci | Accumulated other comprehensive income | Gains and losses that skip the income statement, such as currency changes. May be negative. Optional. |
| ts | Treasury stock | What the company paid to buy back its own shares, taken off equity. Optional. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| equity | Shareholders’ equity | Total assets − total liabilities, or the equity accounts added up less treasury stock. |
| contributed | Paid-in capital | Preferred stock + common stock + additional paid-in capital. Shown when you add up the accounts. |

## 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.

## Assumptions

- 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

1. from = balance, ta = $250,000.00, tl = $150,000.00 gives 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.
2. from = parts, ps = $1,000,000.00, cs = $1,200,000.00, apic = $16,800,000.00, re = $3,670,000.00, ts = $240,000.00 gives equity = $22,430,000.00, contributed = $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).
3. from = parts, ps = $8,000.00, cs = $15,000.00, apic = $107,000.00, re = $31,000.00, ts = $20,000.00 gives equity = $141,000.00, contributed = $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).
4. from = balance, ta = $410,500.25, tl = $455,000.75 gives 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.
5. from = parts, cs = $500,000.00, apic = $120,000.00, re = -$35,000.00, aoci = -$15,000.00, ts = $2,500.50 gives equity = $567,499.50, contributed = $620,000.00.

## FAQ

### 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.

## Sources

- U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: assets = liabilities + shareholders' equity; shareholders' equity is the money that would be left if a company sold all of its assets and paid off all of its liabilities, the amount owners invested plus or minus earnings or losses since inception. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-19)
- OpenStax, Principles of Financial Accounting, 14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock: treasury stock has a debit balance and its total cost reduces total equity; the stockholders’ equity sections of Wilson Enterprises ($22,670,000 less $240,000 of treasury stock = $22,430,000) and Duratech ($161,000 less $20,000 = $141,000). https://openstax.org/books/principles-financial-accounting/pages/14-2-analyze-and-record-transactions-for-the-issuance-and-repurchase-of-stock (retrieved 2026-10-19)
- OpenStax, Principles of Finance, 5.2 The Balance Sheet (assets = liabilities + owner’s equity; contributed capital and earned capital) and 6.4 Solvency Ratios (Clear Lake Sporting Goods: total assets $250,000, liabilities $150,000, stockholder equity $100,000). https://openstax.org/books/principles-finance/pages/6-4-solvency-ratios (retrieved 2026-10-19)