💎 Net Worth Calculator
Track your complete financial picture. Calculate your net worth by subtracting total liabilities from total assets.
Understanding Net Worth
What Is Net Worth?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It’s the ultimate scorecard of your financial health.
The Formula:
Net Worth = Total Assets - Total Liabilities
Why Track Net Worth?
- ✓Provides the big picture of financial progress
- ✓Helps prioritize debt vs. investment decisions
- ✓Motivates positive financial behaviors
- ✓Guides retirement and goal planning
- ✓Measures wealth building effectiveness
Assets vs. Liabilities
📈 Assets (What You Own)
Liquid Assets
- • Checking accounts
- • Savings accounts
- • Money market accounts
- • Certificates of deposit
- • Cash value of life insurance
Investments
- • Stocks and bonds
- • Mutual funds and ETFs
- • 401(k) and IRA accounts
- • Real estate investments
- • Business ownership
Personal Property
- • Primary residence
- • Vehicles
- • Valuable collectibles
- • Jewelry and artwork
- • Electronics and furniture
📉 Liabilities (What You Owe)
Mortgage Debt
- • Primary mortgage balance
- • Second mortgages/HELOCs
- • Investment property mortgages
Consumer Debt
- • Credit card balances
- • Auto loans
- • Personal loans
- • Student loans
- • Store financing
Other Obligations
- • Business loans
- • Tax obligations
- • Unpaid bills
- • Legal judgments
- • Family loans
Net Worth by Age Benchmarks
Average Net Worth by Age
Rule of Thumb Target
Age-Based Formula:
Target Net Worth = (Age × Annual Income) ÷ 10
Example: A 40-year-old earning $75,000 should target $300,000 net worth
How to Improve Your Net Worth
Increase Assets
Invest in appreciating assets like stocks, real estate, and retirement accounts. Automate investments to build wealth consistently.
Reduce Liabilities
Pay off high-interest debt first, especially credit cards. Consider extra mortgage payments for guaranteed returns.
Increase Income
Develop skills, ask for raises, start side businesses, or invest in income-producing assets like rental properties.
Track Regularly
Calculate net worth monthly or quarterly. Use apps or spreadsheets to monitor progress and stay motivated.