Income and personal finance guide
How to Calculate Your Net Worth
Net worth is a point-in-time estimate of assets minus liabilities.
List assets at a current, reasonable value
Assets may include checking and savings balances, investments, retirement accounts, property, vehicles, and other items you choose to track. Use a current estimate, not an old purchase price, and avoid counting an account or jointly owned item twice. Values such as property and investments can move and may not be immediately available as cash.
List what you owe
Liabilities can include mortgage balances, auto and student loans, personal loans, credit-card balances, and other debts. Use current payoff or statement balances and note that accrued interest or fees can change them. A mortgage balance is a liability even when the home’s value is also included as an asset.
Apply the formula
Net worth = total assets − total liabilities. If cash and investments total $30,000 and outstanding loans and card balances total $13,200, estimated net worth is $16,800 at that point in time. This is a snapshot, not an income or spending measure.
Use the number in context
A positive or rising estimate does not by itself establish financial security; liquidity, cash flow, debt costs, insurance, and future obligations also matter. Track values consistently over time and distinguish liquid savings from assets that would require a sale or incur costs to access. The calculator does not value assets or verify debts for you.
Worked example
If cash and investments total $30,000 and outstanding loans and card balances total $13,200, estimated net worth is $16,800 at that point in time.
Frequently asked questions
How often should I calculate net worth?
Choose a consistent interval that helps you review progress without treating short-term market changes as a score.
Should I use purchase price for property?
Use a reasonable current estimate and label it as an estimate; do not confuse it with cash you can immediately access.
Sources and further reading
Try the calculator
Use the Net Worth Calculator to explore your own numbers with the assumptions shown in the tool.
Related guides
Educational content only; not individualized financial, tax, or legal advice.