Net Worth Calculator

Your net worth is one of the most important indicators of financial health. It's a simple but powerful metric that shows the difference between what you own (assets) and what you owe (liabilities). A positive and growing net worth indicates financial progress and security.

This free net worth calculator helps you calculate your current net worth, understand your financial position, and track progress over time. It breaks down assets and liabilities, showing you exactly where you stand financially.

Whether you're just starting your financial journey or want to assess your progress, knowing your net worth is essential for making informed financial decisions and setting realistic goals.

Follow these steps to calculate your net worth:

1. 1

   Calculate Total Assets

   Add up all your assets: cash, investments, retirement accounts, real estate value, vehicles, and other valuable assets. Use current market values, not purchase prices.

2. 2

   Calculate Total Liabilities

   Add up all your debts: mortgage balance, credit card debt, car loans, student loans, personal loans, and any other money you owe. Use current balances.

3. 3

   Calculate Net Worth

   Subtract total liabilities from total assets. Positive number means you have more assets than debts. Negative means you owe more than you own.

4. 4

   Review Financial Health

   Assess your debt-to-asset ratio and compare your net worth to age-based benchmarks. Use this to identify areas for improvement and track progress over time.

Assets: Everything you own with monetary value: cash, investments, retirement accounts, real estate (at current market value), vehicles, and other valuable property. Use current market values, not purchase prices.

Liabilities: Everything you owe: mortgage balance, credit card debt, car loans, student loans, personal loans, and any other debts. Use current balances, not original loan amounts.

Net Worth Formula: Net Worth = Total Assets - Total Liabilities. A positive net worth means you have more assets than debts. Negative net worth means you owe more than you own.

Debt-to-Asset Ratio: Shows what percentage of your assets are financed by debt. Lower is better. Aim for under 50% for good financial health, under 30% for excellent.

1. Track Net Worth Regularly

Calculate net worth monthly or quarterly to track progress. Seeing growth motivates continued good financial habits. Use this calculator regularly to monitor your financial health.

2. Focus on Both Sides

Build net worth by both increasing assets (saving, investing) and decreasing liabilities (paying off debt). Paying off high-interest debt often provides better returns than investing.

3. Use Current Market Values

For accurate net worth, use current market values for assets (especially real estate and investments), not purchase prices. Assets can appreciate or depreciate over time.

4. Don't Include Personal Property

Generally, don't include everyday personal property (furniture, clothing, electronics) unless it has significant resale value. Focus on assets that can be easily converted to cash or generate income.

5. Be Honest with Yourself

Accurate net worth calculation requires honesty. Don't inflate asset values or underestimate debts. Accurate numbers help you make better financial decisions.

6. Focus on Growth Over Time

Net worth can fluctuate, especially with market changes. Focus on long-term trends rather than short-term fluctuations. Consistent growth over years indicates good financial health.