Net Worth Calculator
Calculate your total net worth by adding up all your assets and subtracting all your debts. Track your financial health and see how you compare to age-based benchmarks.
Why Use This Calculator?
Complete Financial Health Snapshot
Net worth = Total Assets - Total Liabilities. $500k assets (home, investments, cash) - $300k debt (mortgage, loans) = $200k net worth. Single number captures entire financial position. Track progress toward wealth goals over time.
Asset and Liability Categorization
Organize finances into categories: liquid assets (cash, stocks), fixed assets (home, car), liabilities (mortgage, student loans). See which categories grow vs shrink. $200k home equity + $150k investments + $30k cash - $50k car loan - $20k credit card.
Progress Tracking Over Time
Compare net worth annually. 2023: $180k, 2024: $220k = $40k growth (22% increase). Track if building wealth or stagnating. Healthy growth: 10-20%/year ages 30-60. Visual progress motivates continued saving and debt payoff.
Debt-to-Asset Ratio Analysis
Calculate leverage ratio: Debt ÷ Assets. $250k debt / $600k assets = 41.7% debt ratio. Under 50% = healthy, over 70% = concerning. High debt ratio limits financial flexibility. Track ratio decreasing as you build wealth.
Retirement Readiness Assessment
Net worth by age benchmarks: Age 30 = 1× salary, 40 = 3×, 50 = 6×, 60 = 8×. Earning $80k at age 40 with $240k net worth = on track. $120k net worth = behind. Calculator shows if retirement ready or need to accelerate savings.
Financial Decision Impact Projection
Model decisions before executing. Buying $50k car with $10k down + $40k loan? Net worth drops $10k immediately (cash out), no gain until car paid. Helps visualize trade-offs between lifestyle purchases and wealth building.
Step-by-Step Guide
List All Liquid Assets (Cash and Equivalents)
Add checking accounts, savings accounts, money market, CDs. $5k checking + $20k HYSA + $8k emergency fund = $33k liquid assets. Include all instantly accessible cash. Most liquid = highest financial flexibility during emergencies.
Example:
Example: $5k checking + $20k savings + $3k money market = $28k liquid
Add Investment Account Balances
Include 401k, IRA, Roth IRA, brokerage accounts, HSA current values. $120k 401k + $45k Roth IRA + $30k taxable brokerage = $195k investments. Use current market value, not contributions. Retirement accounts count toward net worth despite early withdrawal penalties.
Example:
Example: $120k 401k + $45k IRA + $30k brokerage = $195k investments
Enter Real Estate Values
Include primary home, rental properties, land at current market value. Check Zillow/Redfin estimate. $450k home + $200k rental = $650k real estate. Use realistic value, not purchase price or wishful thinking. Real estate often largest asset.
Example:
Example: Primary home $450k + rental property $200k = $650k real estate
Include Vehicles and Physical Assets
Add cars, motorcycles, boats at current value (Kelley Blue Book). $25k car + $8k motorcycle = $33k vehicles. Exclude personal items (furniture, clothes) unless high value ($10k+ jewelry). Vehicles depreciate fast - use realistic resale value.
Example:
Example: 2020 Honda $22k + 2018 Toyota $18k = $40k vehicles
List Mortgage and Home Equity Loans
Enter remaining mortgage balance, HELOC, home equity loans. $320k mortgage remaining + $30k HELOC = $350k housing debt. Use current loan balance (not original), found on monthly statement. Largest liability for most households.
Example:
Example: $320k mortgage + $30k HELOC = $350k housing debt
Add All Consumer Debt
Include car loans, student loans, personal loans, credit cards. $18k car loan + $35k student loan + $8k credit card = $61k consumer debt. Use current balance for each. High-interest consumer debt biggest drag on net worth growth.
Example:
Example: $18k car + $35k student + $8k credit card = $61k debt
Calculate Total Assets and Total Liabilities
Sum all assets: $33k cash + $195k investments + $450k home + $25k car = $703k assets. Sum debt: $320k mortgage + $35k student + $8k credit card = $363k liabilities. Calculator totals automatically.
Example:
Example: $703k total assets, $363k total liabilities
Compute Net Worth (Assets - Liabilities)
Net Worth = Assets - Liabilities. $703k assets - $363k liabilities = $340k net worth. Positive = solvent, negative = "underwater" (owe more than own). Track this number quarterly or annually to measure wealth building progress.
Example:
Example: $703k assets - $363k liabilities = $340k net worth
Review Debt-to-Asset Ratio
Calculate ratio: Total Debt ÷ Total Assets. $363k / $703k = 51.6% debt ratio. Under 50% = healthy financial position. Over 70% = over-leveraged, vulnerable to income shocks. Focus on debt paydown if ratio high.
Example:
Example: 51.6% debt ratio (borderline, focus on debt reduction)
Compare to Age-Based Benchmarks
Net worth by age targets: 30 = 0.5-1× salary, 40 = 2-3×, 50 = 5-6×, 60 = 8-10×. Age 45 earning $100k with $400k net worth = 4× (on track). $150k net worth = 1.5× (behind, accelerate savings).
Example:
Example: Age 40, $80k salary, $240k net worth = 3× (on track)
Expert Tips & Strategies
Calculate Net Worth Quarterly to Track Progress
Update every 3 months: Jan, Apr, Jul, Oct. See investment growth, debt paydown, spending impact. Quarterly tracking shows trends without daily market volatility obsession. Consistent 5-10% quarterly growth (20-40% annual) = building substantial wealth.
Use Current Market Values Not Purchase Prices
Home bought for $300k now worth $450k? Use $450k. Stock bought at $50k now $80k? Use $80k. Net worth reflects TODAY'S financial position, not historical costs. Don't undervalue assets out of conservatism - use realistic current values.
Don't Include Personal Property (Furniture, Clothes)
Exclude furniture, clothes, electronics unless ultra-high value ($10k+ items). $50k of furniture has $5k resale value - not meaningful wealth. Only count assets with significant resale value: home, cars, investments, cash. Personal items aren't liquid wealth.
Focus on Increasing Net Worth 10-20% Annually
Healthy wealth building: 10-20% net worth growth yearly (ages 30-55). $200k net worth growing 15% = $30k annual increase. Achieve via: save 20-30% income, invest aggressively, pay down debt strategically. Compound growth accelerates over decades.
Prioritize Paying Off High-Interest Debt First
Credit card at 24% APR destroys net worth faster than 3% mortgage. $10k credit card costs $2,400/year interest. Pay off high-interest debt before aggressively saving - net worth improves faster eliminating 20%+ interest debt than earning 4% HYSA.
Increase Assets AND Decrease Liabilities Simultaneously
Don't just save - also pay down debt. Save $500/month ($6k/year assets grow) + extra $200/month debt pay down ($2,400/year debt shrinks) = $8,400 annual net worth boost. Dual approach accelerates net worth growth 30-50% faster.
Net Worth Includes Retirement Accounts Despite Penalties
401k with $150k? Include full $150k in net worth despite early withdrawal penalties/taxes. It's YOUR money contributing to wealth. Yes penalties exist, but still valuable asset. Don't exclude retirement accounts - they're often 50%+ of net worth.
Compare Net Worth to Income Ratio by Age
Age 25: 0.1× salary ($50k income = $5k net worth). Age 30: 1×. Age 40: 3×. Age 50: 6×. Age 60: 8×. Age 65: 10× ($100k income = $1M net worth for retirement). Behind benchmarks? Increase savings rate urgently.
Common Mistakes to Avoid
✓ Better approach: Including full mortgage as liability but not home value as asset. $400k home with $280k mortgage should add $400k assets AND $280k liabilities (net $120k equity). Net worth includes home equity - it's real wealth even if illiquid.
✓ Better approach: Valuing home at $600k when Zillow shows $480k. Valuing 2015 car at $25k when KBB shows $12k. Wishful thinking inflates net worth unrealistically. Use conservative estimates: Zillow/Redfin for home, KBB for cars, current balances for investments.
✓ Better approach: Calculating once in 2020, never updating. Market rose 40%, now way behind. Calculate quarterly minimum to track real progress. Investments grow, debt shrinks, home appreciates - annual updates show true wealth trajectory. Stale data = useless data.
✓ Better approach: Including mortgage ($300k) but forgetting car loan ($20k), student loan ($35k), credit cards ($10k). Undercounting liabilities by $65k overstates net worth 20-30%. Include EVERY debt: auto, student, personal loans, credit cards, HELOC, medical bills.
✓ Better approach: Adding "$100k inheritance from grandparents" before receiving it. Net worth = current reality, not future expectations. Don't count bonuses, tax refunds, inheritance until money hits account. Counting unreceived money is fantasy, not financial planning.
✓ Better approach: Comparing $200k net worth at age 35 to friend's $400k, feeling behind. Friend inherited $250k, you built from zero. Compare to yourself (growth over time) and age benchmarks, not others' situations. Everyone's path different - focus on YOUR progress.
✓ Better approach: Negative $40k net worth (debt exceeds assets), taking no action. Negative net worth = financial emergency requiring immediate aggressive debt payoff. Cut expenses 30-50%, side hustle, pay minimums on low-interest, attack high-interest debt. Flip to positive within 2-4 years.
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.