Net Worth Calculator
Calculate your net worth in minutes. Enter assets and liabilities to get a clear snapshot of where you stand — and which levers move the number fastest.
Net worth definition (snippet-ready) + formula
Net worth is your total assets minus your total liabilities. It’s the simplest “financial snapshot” number.
Formula: Net worth = Assets − Liabilities
Example: a simple net worth statement
| Category | Amount |
|---|---|
| Cash & checking | $8,000 |
| Investments | $25,000 |
| Retirement accounts | $40,000 |
| Car value | $12,000 |
| — Total assets | $85,000 |
| Credit cards | $3,000 |
| Student loans | $18,000 |
| Car loan | $6,000 |
| — Total liabilities | $27,000 |
| Net worth (assets − liabilities) | $58,000 |
How to improve net worth (high‑intent checklist)
- Increase savings rate and automate contributions (use Budget Calculator).
- Pay down high‑APR debt first (use Credit Card Payoff Calculator).
- Track big levers: housing, car, recurring subscriptions, interest rates.
- Invest consistently (use Compound Interest Calculator).
Recommended workflow (what to do next)
- Calculate your net worth (this page), then decide on a target (e.g., emergency fund first, then debt payoff, then investing).
- If you’re building cash reserves, set a monthly target with Savings Goal Calculator.
- If your liabilities are driving a negative net worth, model a payoff plan with Debt Payoff Calculator or Credit Card Payoff Calculator.
- If you’re planning a big purchase (house/car), sanity-check affordability with DTI Calculator and Mortgage Affordability Calculator.
Common mistakes (and how to avoid them)
- Double counting your home: if you enter full home value as an asset, also include the mortgage balance as a liability. If you enter home equity instead, don’t also add the full home value.
- Mixing cash flow with net worth: monthly expenses belong in a budget, not on a balance sheet. Net worth is a snapshot; cash flow is a monthly flow.
- Overvaluing hard-to-sell assets: use conservative values for cars, collectibles, and private business value if you include it.
- Ignoring “small” debts: BNPL and small balances still count if they create required monthly obligations.
How we maintain accuracy (methodology)
We keep calculator assumptions and update practices transparent. See Editorial Policy & Methodology.
Frequently Asked Questions
Q:What is net worth?
Net worth is what you own minus what you owe. It’s a snapshot of your financial position: Assets − Liabilities.
Q:Is net worth the same as income?
No. Income is money you earn over time (salary, business income). Net worth is your balance sheet at a point in time.
Q:How often should I calculate net worth?
Monthly or quarterly is enough for most people. The trend over time matters more than day-to-day changes.
Q:Should I include my home in net worth?
Usually yes. Include a realistic market value and include the remaining mortgage balance as a liability.
Q:Should I include my car in net worth?
Yes, if you want a complete view. Use a conservative resale value and include any remaining auto loan balance.
Q:Do I include retirement accounts?
Yes. Retirement balances are assets. (Some people also consider future taxes, but this calculator uses the current account value.)
Q:What if my net worth is negative?
That’s common early in life. Focus on building an emergency fund and paying down high‑interest debt while increasing income and skills.
Q:Does paying off debt always increase net worth?
Paying down debt decreases liabilities, which increases net worth — assuming assets stay constant.
Q:Is it better to invest or pay off debt?
It depends on interest rates and risk. Many people prioritize high‑APR debt first, then invest consistently. Use payoff and compound interest tools to compare scenarios.
Q:How can I track net worth over time?
Save a monthly snapshot (date, total assets, total liabilities) and compare month‑over‑month changes. This calculator is designed for quick recurring check-ins.
Q:What’s the difference between net worth and cash flow?
Net worth is a snapshot (assets minus liabilities). Cash flow is a monthly/weekly flow (income minus expenses). Improving cash flow usually helps net worth over time.
Q:Should I use equity or full market value for my home?
For net worth, equity is most meaningful: estimated home value minus mortgage balance. You can enter home equity directly (asset) and mortgage balance separately (liability), as long as you’re consistent.
Q:Should I subtract future taxes from retirement accounts?
Most net worth tracking uses current account values. If you want a conservative view, you can estimate a tax haircut and enter an adjusted value — but keep it consistent over time.
Q:Do I include a business I own in net worth?
You can, but valuation is tricky. If you include it, use a conservative estimate and be consistent across months. Many people track business cash and debts separately unless they have a credible valuation.