How net worth is calculated
Net worth is a simple subtraction: add up the current value of everything you own, then take away everything you owe. What is left is your net worth — a single number that captures your overall financial position at one moment in time.
Assets include liquid money such as cash and savings, market holdings like stocks and funds, the market value of property you own, and anything else of meaningful resale value. Liabilities are the balances you still need to repay: a mortgage, car loans, credit-card debt, student loans and any other borrowing.
Reading your result
A positive net worth means your assets outweigh your debts; a negative figure means the reverse, which is common early in life when student loans or a fresh mortgage dominate. Neither number is a verdict — the direction it moves over months and years matters far more than any single reading.
The charts split the picture two ways: one compares total assets against total liabilities, and the others show which categories make up each side. A balance sheet that leans heavily on one illiquid asset, such as a home, can look healthy yet leave you short of cash when you need it.
Tips for tracking it well
To make net worth a useful gauge rather than a vanity figure, keep the inputs honest and consistent:
- Use current market values, not what you originally paid, especially for property and investments.
- Recalculate on a regular cadence — quarterly is plenty — so trends are comparable.
- Include every debt, even small revolving balances, so the number is not flattering by omission.
- Watch the gap between liquid and illiquid assets; cash you can reach quickly is its own kind of safety.
Caveats
This calculator is a snapshot and a planning aid, not financial advice. It does not account for taxes owed on selling assets, future income, or how easily a given asset could actually be converted to cash. Values you enter are estimates, so treat the result as a directional guide and consult a qualified professional for decisions that matter.
Formula
net worth = total assets − total liabilities