What is Equity in Real Estate?

In real estate, Equity describes the value of an ownership or an interest in a property.  Equity is calculated by taking the market value of a property and deducting the amount if any, still owing on a mortgage. In other words, Equity is the difference between the market value of your properties and what you owe to your lender. Equity is the amount that the owner would receive after selling a property and paying off the mortgage.