 Can you give me an example? Well, think about it this way. It's the amount of the asset that you truly own. So a home is the easiest example. Ah, there we go. You've got a home worth $300,000. You have $100,000 left on the mortgage, so we're going to subtract that. That's your debt, the liability, which leaves $200,000 in equity. There it is. That's the part that you owe. Love when you talk nerdy. So this applies to a home, a car, pretty much anything.