Enter the total amount of assets and the total amount of stockholder’s equity. The calculator will determine the equity multiplier.

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## Equity Multiplier Formula

The following equation can be used to calculate an equity multiplier.

EM = A / SE

- Where EM is the equity multiplier
- A is the total assets
- SE is the stockholder’s equity

## Equity Multiplier Definition

An equity multiplier is a measure of how the total assets of a company reflect on the total stockholder’s equity. In general, a larger ratio will indicate either less stockholder’s equity or more total assets.

## Equity Multiplier Example

How to calculate an equity multiplier?

**First, determine the total assets.**Determine the value of all of the assets of a company.

**Next, determine the total stock holder’s equity.**Calculate the total value of the stock holder’s equity.

**Finally, calculate the equity multiplier.**Calculate the equity multiplier with the equation above.

## FAQ

**What is an equity multiplier?**

An equity multiplier is a measure of the ratio of the total asset value of a business and the total equity owned by the stockholders.