Net Worth Calculator
Calculate your total financial health. Total your assets, subtract your liabilities, and track your progress toward building wealth.
Assets (What You Own)
Liabilities (What You Owe)
Example Net Worth Calculation
See how our default scenario results in a positive net worth of $114,000.
Step 1: Summing Assets
Total Assets = $345,000
Step 2: Summing Liabilities
Total Liabilities = $231,000
Step 3: Finding the Difference
$345,000 (Assets) - $231,000 (Liabilities) = $114,000 Net Worth
Interpretation: This individual has built a healthy equity position in their home and has significant retirement savings, resulting in a strong positive net worth.
Frequently Asked Questions
What is net worth?
Net worth is the most comprehensive measure of your financial health. It is the value of everything you own (assets) minus everything you owe (liabilities). It represents your true wealth.
How often should I calculate it?
Most financial experts recommend checking your net worth once a quarter or at least once a year. This helps you track long-term trends rather than daily market fluctuations.
What counts as an asset?
An asset is anything of value that can be converted to cash. This includes cash, bank accounts, investments, retirement funds, real estate, and valuable personal property like cars or jewelry.
What is a liability?
A liability is a financial debt or obligation. Common liabilities include mortgages, car loans, student loans, credit card balances, and any other personal or business loans.
Is negative net worth bad?
It is common for young adults or recent graduates to have a negative net worth due to student loans. While not ideal, it's a starting point. The goal is to trend toward positive net worth over time.
Should I include my car?
Yes, but use the resale value, not what you paid for it. Cars are depreciating assets, so their value decreases every year.
Disclaimer: This calculator provides estimates for informational purposes only. Net worth is a single metric and doesn't account for cash flow or life stage needs. Consult a qualified financial advisor for professional guidance.