Net Worth Calculator
Calculate your total net worth by summing all assets and subtracting all liabilities.
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About the Net Worth Calculator
Net worth is your assets minus your liabilities — a single number summarizing your financial standing. Tracking it monthly or quarterly is the best way to see whether your decisions are moving you forward or backward. This page covers what counts as an asset, what doesn't, and the milestones along the way.
The Formula
Net worth = Total assets − Total liabilities. Assets: cash, investments, retirement accounts, real estate (current market value), vehicles, valuables. Liabilities: mortgages, student loans, credit card balances, auto loans, personal loans.
Worked Example
Assets: $45,000 cash + $180,000 401(k) + $30,000 brokerage + $420,000 home + $20,000 car = $695,000. Liabilities: $300,000 mortgage + $8,000 student loan + $3,000 credit card + $15,000 auto loan = $326,000. Net worth = $369,000.
What to include and exclude
Include: cash, investments, home (at market value), vehicles (at trade-in value, not new price), other significant assets. Exclude or be conservative: furniture, electronics, clothing, jewelry (illiquid and depreciating). Personal belongings rarely should make up more than 5% of net worth.
Net worth milestones
Common benchmarks: positive net worth (zero crossed), $100k, $250k, $500k, $1M. The 'second 100k' is much easier than the first — once you have a base, compounding does more work than your contributions.
Liquid vs total net worth
Total net worth includes your home. Liquid net worth excludes it (and other illiquid assets). For retirement planning, liquid net worth matters more — you can't easily eat your house.
Common Mistakes
- Counting your home at the price you paid years ago. Use current market value.
- Counting cars at purchase price. They depreciate 20-30% in year one alone.
- Including a paid-off car loan as an asset. The car is the asset; the loan was the liability.
Frequently Asked Questions
How often should I update my net worth?
Monthly or quarterly. Don't agonize over short-term changes — markets move.
What's a good net worth for my age?
Common rule: net worth ≈ Age × Pre-tax income ÷ 10 by mid-career. Highly variable based on cost of living and savings rate.
This calculator is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making significant financial decisions.