Definition - Owners' Equity, Also Known as Net Worth

Definition: Owners' Equity is the combined investments of the owner(s) and the accumulation of profit or losses for the business since it began.

Owner's Equity (Net Worth) is expressed in the following accounting formula:

Net Worth = Assets - Liabilities

Also Known As: Also called, Net Worth, Owner's Capital, Net Assets, Shareholders' Equity, or Shareholders' Funds.

Alternate Spellings: Owner's Equity