Oct 28, 2025

Equity

• Equity is the value of ownership in a company or personal assets after liabilities are subtracted.

How do I remember it?

• Think of it like this "Equity is what's really mine"

Equity = what’s left over for you!

Real world example

• Suppose you buy a house worth $300,000 and take a mortgage of $200,000.

House value (Asset): $300,000

Mortgage (Liability): $200,000

• Equity (What you own outright):

300,000 − 200,000 = 100,000

So, you have $100,000 of equity in your home!