Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

How to Calculate Stockholders' Equity for a Balance Sheet

By Motley Fool Staff – Updated Apr 30, 2025 at 4:50PM

Key Points

  • Stockholders' equity equals assets minus liabilities, framing investor stake after creditors.
  • Paid-in capital includes monies from stock sales, often split into par value and excess amounts.
  • Retained earnings accumulate as undistributed profit, funding future investments or expansions.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.