• Que.

    how to calculate equity


    Calculating equity involves subtracting liabilities from assets. It's like figuring out how much of your house truly belongs to you after paying off debts.

    To calculate it, use this formula:

    Equity = Assets - Liabilities

    First, list all your assets, like cash, investments, and property values. Then, jot down your liabilities, such as loans and mortgages. Finally, subtract your liabilities from your assets. The resulting figure is your equity. It's a vital measure for individuals and businesses alike, showing how much ownership or value remains after debts are settled. So, keep track to gauge financial health accurately.

    Feb 02 2024

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