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.
Frequently Asked Questions
What is net worth and why does it matter?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It's the single best measure of your overall financial health. For example, if you have $500,000 in assets ($400k home + $75k retirement + $25k savings) and $300,000 in debt ($280k mortgage + $20k car loan), your net worth is $200,000. Net worth matters because: 1) It shows your true financial position (high income doesn't mean wealth if you have high debt), 2) It tracks your progress toward financial goals, 3) It helps you make better decisions (should I pay off debt or invest?), and 4) It indicates your ability to handle financial emergencies. Aim to grow your net worth by 10-15% annually through saving, investing, and debt reduction.
What should my net worth be at my age?
Fidelity suggests your net worth should be: Age 30 = 1x annual income, Age 40 = 3x, Age 50 = 6x, Age 60 = 8x, Age 67 = 10x. For example, if you earn $75,000/year at age 40, you should have a net worth of $225,000. However, these are just guidelines—your situation depends on: 1) When you started saving (late starters need to save more aggressively), 2) Student loan debt (doctors/lawyers start with -$200k net worth), 3) Cost of living area (expensive cities make saving harder), 4) Family situation (kids are expensive), and 5) Inheritance or windfall gains. Don't stress if you're behind—focus on increasing your net worth by $10-20k/year through consistent saving and investing. Even starting at age 40, you can catch up by maxing out retirement accounts.
Should I include my home in my net worth calculation?
Yes, but be conservative about the value. Include your home's current market value (check Zillow/Redfin estimates or recent comps) minus any selling costs you'd pay (typically 6-8% for realtor fees, closing costs, etc.). Your home is an asset, but it's illiquid—you can't easily access the value without selling or getting a HELOC. Some financial experts exclude primary residence from net worth calculations to focus on 'investable assets,' but the standard definition includes all assets. What matters more: don't let your home dominate your net worth. If 90% of your net worth is home equity, you're 'house rich, cash poor' and vulnerable to housing market crashes. Aim for a balanced portfolio: 40-50% retirement/investments, 30-40% home equity, 10-20% liquid cash.
What's more important: high net worth or high income?
High net worth is more important for long-term financial security. Income is what you earn; net worth is what you keep. Many high earners ($200k+) have low net worth due to lifestyle inflation—they upgrade homes, cars, and vacations as income rises. Meanwhile, moderate earners ($75k) who save 20-30% can build substantial wealth. Example: Doctor earning $300k with $2M house, $500k student loans, and $50k savings has $150k net worth. Teacher earning $60k with paid-off $200k house and $150k retirement has $350k net worth—more than double! Focus on increasing your savings rate (income - expenses) rather than just income. The goal: reach a net worth of 25x your annual expenses, allowing you to retire comfortably (the '4% rule'). If you spend $50k/year, you need $1.25M net worth to retire.
How can I increase my net worth faster?
Five strategies to accelerate net worth growth: 1) Increase income—side hustles, job hopping (5-10% raises), promotions, or starting a business can add $10-50k/year. Every $1,000 monthly income increase = $12,000/year to save/invest. 2) Reduce expenses—cut the 'big three' (housing, transportation, food). Moving to a cheaper home or getting a roommate can save $500-1,000/month ($6-12k/year). 3) Pay off high-interest debt—credit cards (20% APR) and personal loans first. Paying off $10k at 20% saves $2k/year = $2k net worth boost. 4) Invest aggressively—max out 401k ($23,000/year) and Roth IRA ($7,000/year) = $30k/year saved. In stocks (10% annual return), this becomes $5.7M in 30 years. 5) Avoid lifestyle inflation—when you get a raise, save 50-75% of it instead of upgrading your lifestyle. A $10k raise could add $7,500/year to net worth if you save it all.
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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.