Net Worth Calculator

Calculate your net worth by subtracting your total liabilities from your total assets. This helps you understand your current financial position and track your progress over time.

Assets

Cash & Checking Money in checking and savings accounts

Investments Stocks, bonds, mutual funds, retirement accounts

Real Estate Current market value of your home and other properties

Personal Property Value of cars, furniture, jewelry, and other possessions

Liabilities

Mortgage Remaining balance on all mortgages

Other Loans Car loans, student loans, personal loans

Credit Card Debt Total balance on all credit cards

Other Debt Any other liabilities not listed above

Quick Examples:

How to Use This Calculator

Enter the current value of all your assets (what you own)
Enter the current balance of all your liabilities (what you owe)
Review your inputs to ensure accuracy
Click Calculate to see your net worth and financial breakdown

Formula Used

Net Worth = Total Assets - Total Liabilities

Where:

Total Assets = Cash + Investments + Real Estate + Personal Property
Total Liabilities = Mortgage + Other Loans + Credit Card Debt + Other Debt
Net Worth = The difference between what you own and what you owe

Example Calculation

Real-World Scenario:

Sarah is a 35-year-old professional who wants to calculate her net worth to assess her financial health and plan for the future.

Assets:

Cash & Checking = $15,000
Investments = $75,000
Real Estate = $350,000
Personal Property = $30,000

Liabilities:

Mortgage = $250,000
Other Loans = $20,000
Credit Card Debt = $5,000
Other Debt = $0

Calculation:

Total Assets = $15,000 + $75,000 + $350,000 + $30,000 = $470,000

Total Liabilities = $250,000 + $20,000 + $5,000 + $0 = $275,000

Net Worth = $470,000 - $275,000 = $195,000

Result: Sarah has a positive net worth of $195,000, indicating she is in a healthy financial position.

Why This Calculation Matters

Practical Applications

Tracking financial progress over time
Evaluating readiness for major purchases
Planning for retirement and other financial goals
Assessing overall financial health

Key Benefits

Provides a clear snapshot of your financial position
Helps identify areas for improvement
Enables better financial decision-making
Serves as a benchmark for setting financial goals

Common Mistakes & Tips

Many people overestimate the value of their assets, especially personal property like cars and collectibles. Use realistic market values rather than purchase prices or sentimental values. For real estate, consider recent comparable sales in your area rather than the original purchase price.

Don't overlook less obvious debts like personal loans from family members, tax liabilities, or pending legal obligations. Also include the full balance of debts, not just the monthly payment. These hidden liabilities can significantly impact your true net worth.

Your net worth changes over time as you pay down debt, accumulate assets, or experience market fluctuations. Calculate your net worth at least annually, or quarterly if you're actively working to improve your financial position. This helps you track progress and adjust your financial strategy as needed.

Frequently Asked Questions

A "good" net worth depends on your age, income, and financial goals. As a general guideline, financial experts often recommend having a net worth equal to your annual salary by age 30, three times your salary by age 40, and so on. However, the most important factor is having a positive net worth that is growing over time.

For most people, calculating net worth annually is sufficient. However, if you're actively working to improve your financial situation or experiencing significant life changes, quarterly or even monthly calculations can provide valuable feedback on your progress.

Yes, you should include your primary residence in your net worth calculation, but at its current market value, not the purchase price. Include the remaining mortgage balance as a liability. Some financial planners also calculate a "liquid net worth" that excludes your primary residence to assess your more readily accessible assets.

References & Disclaimer

Financial Disclaimer

This net worth calculator is for informational purposes only and should not be considered financial advice. Results are based on the information you provide and may not reflect your complete financial picture. Consult with a qualified financial professional before making important financial decisions.

References

How to Calculate Your Net Worth - Investopedia - Comprehensive guide to calculating and understanding net worth
Money Smart for Young People - CFPB - Financial education resources from the Consumer Financial Protection Bureau
How to Calculate Your Net Worth - Mint - Practical advice for tracking your financial progress

Accuracy Notice

The accuracy of this calculator depends on the values you input. Market values of assets can fluctuate, and some assets may be difficult to value precisely. This calculator provides an estimate of your net worth but should not be used as the sole basis for financial decisions. For precise valuations, especially for complex assets like businesses or unique properties, consult with appropriate professionals.

About the Author

Kumaravel Madhavan

Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.

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