💰 Finance · Net Worth

How to Calculate
Your Net Worth

Add up your assets, subtract your liabilities — your net worth is the clearest snapshot of your financial health.

The Net Worth Formula

The simplest and most important formula in personal finance:

Net Worth = Total Assets – Total Liabilities
Assets = everything you own (cash, property, investments)
Liabilities = everything you owe (mortgage, loans, credit cards)
Positive = you own more than you owe ✅
Negative = you owe more than you own ⚠️
💡 Remember: Net worth is a snapshot in time. Track it monthly or quarterly to see your financial progress over time.

Net Worth Calculator

📈 Assets (What You Own)

Total Assets: $508,000

📉 Liabilities (What You Owe)

Total Liabilities: $323,000
Your Net Worth
$185,000
You own more than you owe ✅

Step-by-Step Guide

1

List all your assets

Include cash, savings, checking accounts, investment accounts, retirement funds, real estate value, vehicle value, and any other valuables.

2

List all your liabilities

Include mortgage balance, car loans, student loans, credit card balances, personal loans, and any other money you owe.

3

Subtract liabilities from assets

Net Worth = $508,000 – $323,000 = $185,000

4

Track it over time

A single number means little. Recalculate every 3-6 months and look for the upward trend — that's real financial progress.

Worked Examples

Recent Graduate

Assets: $8,000
Student debt: $35,000
Net worth:
–$27,000

Young Professional

Assets: $85,000
Debts: $42,000
Net worth:
$43,000

Middle Age

Assets: $520,000
Mortgage+loans: $310,000
Net worth:
$210,000

Pre-Retirement

Assets: $1.4M
Remaining mortgage: $80,000
Net worth:
$1,320,000

More Finance Calculators

🏠
Mortgage
Monthly payments
🧾
Income Tax
Tax brackets
📈
Interest
Simple & compound
💵
Net Income
Take-home pay
📊
Profit Margin
Business profits
🏪
Sales Tax
Add tax to price
🧮
VAT
Value added tax
⏰
Overtime Pay
Extra hours pay

Frequently Asked Questions

What is a good net worth by age? ▾
A common benchmark: net worth should be roughly your age × your annual salary ÷ 10. So a 40-year-old earning $60,000 should target ~$240,000. These are rough guides — what matters most is a consistently growing trend.
Should I include my home in net worth? ▾
Yes — include the current market value as an asset, and your remaining mortgage balance as a liability. The difference (home equity) contributes to your net worth.
Is a negative net worth bad? ▾
Not necessarily — it's very common early in life due to student loans. What matters is the direction: is it improving month over month? Many millionaires once had deeply negative net worth.
How often should I calculate my net worth? ▾
Monthly is ideal for tracking progress, but even quarterly gives you a clear picture. The key is consistency — use the same method each time so you can compare accurately.