Type any word!

Sweat equity Meaning in English

expression

ˈswɛt/ /ˈɛkwəti
SWET EK-wuh-tee
swˈɛt/ /ˈɛkwɪti
swet EK-wi-tee

Definition

Sweat equity is the value created in a business or project by someone's hard work, effort, or time instead of financial investment. It often refers to people building something through their own labor, rather than just supplying money.

Usage & Nuances

Primarily used in business and entrepreneurship contexts. Common in real estate, startups, and renovation. Not a formal financial term but widely used informally. Expect collocations like 'put in sweat equity,' 'gain sweat equity,' or 'sweat equity partner.' Sometimes confused with 'equity' (ownership value); 'sweat equity' always emphasizes labor, not money.

Example Sentences

He gained sweat equity by working on the house himself.

basic

Many startups offer sweat equity instead of high salaries.

basic

She built sweat equity by spending weekends fixing up the shop.

basic

Instead of investing cash, they contributed sweat equity to launch the business.

natural

My share in the company is all sweat equity—hours and hours of work!

natural

He’s looking for friends who want to earn sweat equity in the project together.

natural