What is the accounting equation?
The accounting equation is Assets = Liabilities + Equity. It shows how a business's resources are financed.
Accounting Calculator
Accounting Equation Calculator
Solve for assets, liabilities, or equity using the basic accounting equation: Assets = Liabilities + Equity.
Choose what to calculate
Calculated Assets
-
Enter liabilities to calculate assets.
Result check
Enter the two known values. The calculator will solve the missing part of the equation without showing confusing NaN output.
Formula
Assets = Liabilities + Equity
Assets are resources owned by a business. Liabilities are amounts the business owes. Equity is the owner's remaining claim after liabilities are subtracted from assets.
Worked example
If liabilities are 400 and equity is 600, assets are 1,000 because 400 + 600 = 1,000.
Common mistakes
Watch for these issues
Mixing up liabilities and expenses
Forgetting that equity is the owner's claim after liabilities
Entering only one side of the equation
Assuming a positive result always means the numbers are correct
Related tools
Keep learning with connected tools and guides
Use the Trial Balance Calculator next, or explore beginner-friendly accounting guides.
FAQ
Accounting Equation Calculator FAQs
How do you calculate assets?
Add liabilities and equity together. Assets = Liabilities + Equity.
How do you calculate liabilities?
Subtract equity from assets. Liabilities = Assets - Equity.
How do you calculate equity?
Subtract liabilities from assets. Equity = Assets - Liabilities.
Can this calculator help with accounting homework?
Yes. It can help you check basic accounting equation problems, but you should still show your own working.
Why must the accounting equation balance?
It balances because every business resource is funded either by amounts owed to others or by the owner's claim.