You can figure out how much equity you have with a simple formula, but the exact number depends on whether you’re talking about a home , a business , or an investment. Equity is basically what you own outright after subtracting what you still owe.

What “equity” means

  • In a home:
    Equity = current market value of the property − remaining mortgage balance.

  • In a business:
    Equity = total assets − total liabilities.

  • In investments (like stocks):
    Your equity = current value of your holdings − any margin or debt used to buy them.

Quick way to calculate your equity

  1. List what it’s worth (value).
    • House price today, business assets total, or portfolio value.
  2. List what you owe on it (debt).
    • Mortgage, business loans, margin loans, etc.
  3. Subtract:

Equity=Value−Debt\text{Equity}=\text{Value}-\text{Debt}Equity=Value−Debt

If the result is negative, you have negative equity (you owe more than it’s worth).

Fast examples

  • Home example
    • Home value: 400,000
    • Mortgage balance: 250,000
    • Equity: 150,000
  • Business example
    • Assets (cash, equipment, inventory, etc.): 300,000
    • Liabilities (loans, payables, etc.): 180,000
    • Equity: 120,000

What you can do next

If you tell what kind of equity you mean (home, business, stocks) and share:

  • Current value (even a rough estimate), and
  • How much you still owe,

a step‑by‑step breakdown can be done for your specific numbers.