How it works
Net worth is a simple subtraction:
Net worth = total assets − total liabilities
Assets are things you own that have monetary value: cash, savings, retirement and brokerage accounts, the market value of your home, vehicles and other property. Liabilities are what you owe: mortgage balances, auto, student and personal loans, credit card balances, medical debt and any other money you have borrowed.
The calculator also reports your debt-to-asset ratio:
Debt-to-asset ratio = total liabilities ÷ total assets × 100
If you enter no assets the ratio is undefined, so the calculator shows N/A.
A falling ratio means you own more and more of your assets outright. Leave any field blank to count it as zero. Use current market values (what you could sell for today), not what you paid, and current balances from your latest statements.
Worked examples
Homeowner in their 40s
Assets: $15,000.00 cash, $85,000.00 retirement, $20,000.00 investments, a $350,000.00 home and $18,000.00 in vehicles, for a total of $488,000.00. Liabilities: $260,000.00 mortgage, $12,000.00 auto loan, $25,000.00 student loans and $4,000.00 on cards, for a total of $301,000.00. Net worth: $187,000.00, with a debt-to-asset ratio of 61.7%.
Recent graduate
Assets: $6,000.00 cash, $12,000.00 in a 401(k) and a car worth $9,000.00, for a total of $27,000.00. Liabilities: $38,000.00 student loans, $3,500.00 credit cards and a $7,000.00 car loan, for a total of $48,500.00. Net worth: -$21,500.00. Negative, but typical for this stage, and every payment improves it.
How to value your assets
- Cash and accounts: use today's balances.
- Retirement accounts: use the full balance. Some people subtract estimated taxes on traditional 401(k) and IRA balances to get a more conservative after-tax figure. Whichever you choose, be consistent from year to year.
- Home: use a realistic sale price, perhaps less selling costs of 5%–6%. Online estimates can be off by 5% or more.
- Vehicles: use a private-party value from a pricing guide. Cars lose value every year, so update this regularly.
- Personal belongings: furniture, electronics and clothing rarely sell for much. Most planners leave them out unless an item has real resale value, such as jewelry, art or collectibles.
What is a good net worth?
There is no single right number. Net worth naturally rises with age as you pay down debt and your savings compound. Survey data such as the Federal Reserve's Survey of Consumer Finances show that median net worth is far lower than the average, because a small number of very wealthy households pull the average up. Comparing yourself to medians for your age group can be motivating, but what matters most is your own trend.
A rough rule of thumb from the book The Millionaire Next Door estimates an “expected” net worth of age × pre-tax income ÷ 10. It is a crude benchmark, but it shows how income and time both matter.
Negative net worth is common, and fixable
Many young adults, especially recent graduates with student loans, start with a negative net worth. That is normal. Focus on direction: each loan payment and each dollar saved raises your net worth. Paying down high-interest debt is often the fastest way to improve it. See the debt payoff comparison for avalanche and snowball strategies.
How to grow your net worth
- Spend less than you earn and direct the difference to savings or debt. The 50/30/20 budget calculator gives you a simple framework.
- Automate saving and investing through payroll retirement contributions and automatic transfers.
- Capture employer matches, which are free money. Model them with the 401(k) calculator.
- Avoid high-interest debt and be wary of financing assets that lose value, like cars.
- Protect what you have with an emergency fund and adequate insurance.
Track it over time
Calculate your net worth on the same date each quarter or year, using the same method, and record the results. Watching the number climb is one of the most motivating habits in personal finance. A single snapshot is less useful than the trend. Market swings can move the number in the short run, so focus on progress over several years.
Net worth vs. income
A high income doesn't guarantee a high net worth. Someone earning $200,000 who spends it all can have a lower net worth than someone earning $60,000 who saves 20% and invests steadily. Net worth measures what you have kept, not what you have earned. That is why many planners focus on your savings rate, the share of income you save, as the main driver of long-term wealth.
Liquid vs. illiquid net worth
Not all net worth is equally useful in an emergency. Liquid assets, such as cash and taxable investments, can be turned into money quickly. Illiquid assets, such as home equity, vehicles and retirement accounts with early-withdrawal penalties, cannot be spent easily. A household with a large net worth tied up entirely in a home can still be cash-poor. Track your liquid net worth separately so you know how much you could actually use if needed, and keep an emergency fund in cash regardless of your total.
Finally, remember inflation. A net worth that grows 3% a year when inflation is 3% isn't growing in real terms. See the inflation calculator to compare past and future values in today's dollars.
Common net worth mistakes
- Counting a home at its purchase price instead of its current value.
- Forgetting small debts such as buy-now-pay-later plans, medical bills or money owed to family.
- Valuing cars at what you paid rather than resale value.
- Double-counting an asset, for example listing an HSA under both cash and investments.
- Comparing numbers calculated with different methods from year to year.
Frequently asked questions
How do you calculate net worth?
Add up the current value of everything you own (assets), add up everything you owe (liabilities), and subtract liabilities from assets.
Should I include my home in my net worth?
Yes. Include its current market value as an asset and the mortgage as a liability. Some people also track net worth excluding the home, since you need somewhere to live and the equity isn't easy to spend.
Should I include my car?
Yes, at its current resale value, with any auto loan listed as a liability. Remember that vehicles depreciate quickly.
Do retirement accounts count toward net worth?
Yes. 401(k), IRA and similar balances are assets. For a conservative figure, you can reduce traditional (pre-tax) balances by your expected tax rate in retirement.
What is a good debt-to-asset ratio?
Lower is better. Under 50% is generally considered healthy, and the ratio usually falls with age as mortgages are paid down. A ratio above 100% means negative net worth.
How often should I calculate my net worth?
Quarterly or annually is plenty. Use the same method and date each time so the numbers are comparable.
Is my data saved or sent anywhere?
No. The calculation runs entirely in your browser. If you use the share link, your numbers are placed in the link itself, so only share it with people you trust.