how is equity calculated 
equity is equal to total assets minus its total liabilities these figures can all be found on a company s balance sheet for a company for a homeowner equity would be the value of the home less any outstanding mortgage debt or liens the bottom linefinancial equity represents the ownership interest in a company s assets after deducting liabilities it reflects the value that belongs to the shareholders or owners of the business equity can also refer to other items like brand equity or other non financial concepts 