Net Worth Calculator
Track your financial health by calculating assets minus liabilities
Assets
Liabilities
Your Net Worth
$175,000Debt-to-Asset Ratio
64.6%
Assets
$495,000
Liabilities
$320,000
Asset Allocation
Assets vs Liabilities
Email your results
Get a copy of this calculation sent to your inbox.
No spam. Unsubscribe anytime.
What is Net Worth?
Net worth is the single most important metric for measuring your overall financial health. Unlike income, which measures cash flow, net worth measures **accumulated wealth**. It is a snapshot of your financial position at a specific point in time, calculated by subtracting your total **liabilities** (what you owe) from your total **assets** (what you own).
A positive net worth means you own more than you owe, while a negative net worth suggests you have more debt than assets. Tracking this number monthly or annually allows you to see the real impact of your saving, investing, and debt repayment strategies.
How to Categorize Your Wealth
To get an accurate net worth calculation, you must be thorough in listing both sides of the ledger:
Assets (What You Own)
- Liquid Assets: Cash, checking, and high-yield savings accounts.
- Investments: Brokerage accounts, 401(k)s, IRAs, and HSAs.
- Real Estate: The current market value of your primary residence and rentals.
- Personal Property: Resale value of vehicles, jewelry, or art.
Liabilities (What You Owe)
- Mortgages: The remaining principal balance on your home loans.
- Student Loans: Total outstanding federal and private educational debt.
- Consumer Debt: Credit card balances, personal loans, and auto loans.
- Other Debts: Medical bills, tax liabilities, or private loans.
Frequently Asked Questions
What is net worth?
Net worth is a measure of your financial health, calculated as the total value of everything you own (assets) minus the total value of everything you owe (liabilities or debt).
What counts as an asset for net worth?
Assets include cash (savings, checking), investments (stocks, bonds, retirement accounts), real estate (home value), vehicles, and valuable personal property. For net worth, you should use the current market value of these items.
Why should I track my net worth?
Tracking net worth over time is the most accurate way to measure financial progress. It accounts for both debt reduction and asset growth, providing a "big picture" view of your wealth that a simple salary number cannot capture.
Wealth Metrics
Debt-to-Asset Ratio
A ratio under 0.50 is generally considered healthy.
Liquidity Ratio
Do you have enough cash to cover 3-6 months of liabilities?
Investment Percentage
How much of your net worth is in "appreciating" vs "depreciating" assets?