Net Worth Calculator

Calculate your net worth to understand your overall financial position. Net worth is your total assets minus total liabilities - a key metric for tracking financial progress, setting goals, and measuring wealth building over time.

What is Net Worth?

Net Worth = Total Assets - Total Liabilities

It's a snapshot of your financial position:

Positive net worth: You own more than you owe (good!)
Negative net worth: You owe more than you own (needs improvement)
Zero net worth: Assets equal liabilities (break-even)

Assets (What You Own)

Liquid Assets

Cash: Checking, savings accounts
Investments: Stocks, bonds, mutual funds, ETFs
Retirement accounts: 401(k), IRA, pension values

Real Estate

Primary residence: Current market value (not purchase price)
Investment properties: Rental properties, land
Use market value: What you could sell for today

Personal Property

Vehicles: Current market value (not purchase price)
Valuable items: Jewelry, art, collectibles (if significant value)
Business assets: If you own a business

Liabilities (What You Owe)

Mortgage Debt

Primary mortgage: Current balance (not original loan)
Home equity loans: Second mortgages, HELOCs
Use current balance: Check your latest statement

Consumer Debt

Credit cards: Current balances (not credit limits)
Car loans: Remaining balance
Student loans: Current balance
Personal loans: Any other loans

Net Worth by Age

Age 30

Target: 1x annual income

Example: $75,000 income = $75,000 net worth target

Age 40

Target: 3x annual income

Example: $100,000 income = $300,000 net worth target

Age 50

Target: 6x annual income

Example: $100,000 income = $600,000 net worth target

Age 60

Target: 8x annual income

Example: $100,000 income = $800,000 net worth target

Example Net Worth Calculation

Assets

Cash & Savings: $10,000
Investments: $50,000
Home Value: $300,000
Car Value: $25,000
Total Assets: $385,000

Liabilities

Mortgage: $200,000
Car Loan: $10,000
Credit Cards: $5,000
Total Liabilities: $215,000

Net Worth

$385,000 - $215,000 = $170,000

Improving Your Net Worth

Increase Assets

Save more: Build emergency fund, increase savings
Invest: Contribute to retirement, invest in stocks/bonds
Pay down mortgage: Build home equity
Increase income: Higher salary = more to save/invest

Decrease Liabilities

Pay off debt: Credit cards, car loans, student loans
Reduce spending: Lower expenses = more to pay debt
Avoid new debt: Don't take on unnecessary loans
Refinance: Lower interest rates reduce debt faster

Tracking Net Worth Over Time

Calculate net worth regularly (monthly or quarterly) to:

Track progress: See if you're building wealth
Set goals: Target specific net worth milestones
Identify trends: Are you improving or declining?
Make adjustments: Change strategy if not progressing

Common Net Worth Milestones

$0: Break-even point (assets = liabilities)
$100,000: First $100k is the hardest
$250,000: Solid financial foundation
$500,000: Significant wealth accumulation
$1,000,000: Millionaire status

Net Worth vs. Income

Net worth and income are different:

Income: How much you earn (flow)
Net worth: How much you own (stock)
High income ≠ High net worth: If you spend everything, net worth stays low
Focus on net worth: Better measure of financial health

What to Include/Exclude

Include

All cash and investments
Real estate at market value
Vehicles at current value
All debts and loans

Exclude (Usually)

Personal items (clothes, furniture) unless very valuable
Future income (not an asset yet)
Expected inheritances (not yours yet)
Social Security (future benefit, not current asset)

Net Worth by Life Stage

Early Career (20s-30s)

Often negative or low due to student loans. Focus on paying debt and starting to save.

Mid Career (30s-40s)

Should be building positive net worth. Home equity and retirement accounts growing.

Pre-Retirement (50s-60s)

Net worth should be significant. Focus on retirement savings and debt elimination.

Retirement (60s+)

Net worth may decrease as you draw down assets. Goal is to maintain enough for lifetime.

Tips for Building Net Worth

Live below your means: Spend less than you earn
Pay yourself first: Save/invest before spending
Reduce debt: Pay off high-interest debt first
Invest consistently: Regular contributions grow over time
Track regularly: Monitor progress and adjust
Be patient: Net worth builds slowly, then accelerates

Financial Tip: Don't be discouraged by a low or negative net worth, especially when young. Focus on the trend - is it improving over time? Building net worth is a marathon, not a sprint. The first $100,000 is the hardest, then compounding takes over. Track your net worth regularly and celebrate milestones along the way!

Net Worth Calculator

Assets (What You Own)

Liabilities (What You Owe)