How It Works
Net worth equals total assets minus total liabilities. A positive net worth means assets exceed liabilities; a negative net worth means liabilities exceed assets.
List the assets you own and liabilities you owe, using current balances or reasonable estimates. The calculator totals each side and subtracts liabilities from assets.
Net worth is a snapshot rather than an income measure. It can rise or fall because of debt payments, savings, asset-price changes, or new borrowing even when your income has not changed.
Formula
- A — Total assets
- L — Total liabilities
- N — Net worth
Example
Example inputs: Cash $5,000, investments $25,000, home $300,000, other assets $5,000, debts $220,000.
Result: Total assets: $335,000. Net worth: $115,000.
Frequently Asked Questions
Does net worth include income?
No. Net worth measures what you own minus what you owe at a point in time.
Should I include my home in net worth?
Yes, if you own it. Use a reasonable current market value as an asset and include any remaining mortgage balance as a liability.
Should retirement accounts count as assets?
Yes. Retirement accounts are generally assets in a net-worth calculation, although taxes and withdrawal restrictions can affect their economic value.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.