Definition

Noun: - Interest earned through labor: "Sweat equity" refers to the value or ownership stake someone earns in a property or business, not by investing money, but by contributing their own physical labor, effort, and time to improve, renovate, or maintain it.

Usage

This term is commonly used in real estate, business startups, and cooperative housing. It describes a non-monetary investment where work is exchanged for a share of ownership or future profits.

Examples

Advanced Usage

• "To build sweat equity": This phrase describes the process of earning ownership through labor.
  • They couldn't afford a down payment, so they are building sweat equity by repairing the house for the owner.

Variants and Related Words

• Equity (n): The value of an ownership interest in property, typically after debts are subtracted.
• Sweat (n/v): Informally refers to hard work or physical labor.

Synonyms

• Labor investment
• Sweat investment

Related Idioms and Phrases

• "To pay in sweat": To pay for something through hard work rather than money.
  • He bought his share of the business by paying in sweat over two years.

Noun

1. interest in a building that a tenant earns by contributing to its renovation or maintenance