finance calculator

Net Worth Calculator

Calculate your net worth by adding up assets like cash, investments, and property, then subtracting mortgage, loan, and credit card debt.

Net worth is total assets minus total liabilities — everything you own at current value minus everything you owe. $550,000 in assets (cash, investments, retirement, and a home) against $301,000 in debt (mortgage, loans, credit cards) gives a net worth of $249,000. Liquid net worth subtracts the same debt from just cash and investments, which is often negative even when total net worth is healthy.

Formula Verified by Dr. Elizabeth Vance, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Cash & savings$

Investments (brokerage)$

Retirement accounts$

Real estate value$

Other assets (vehicles, etc.)$

Mortgage balance$

Auto & other loans$

Credit card debt$

Results

Net worth

$249,000

Total assets$550,000

Total liabilities$301,000

Liquid net worth-$241,000

Debt-to-asset ratio54.7%

Tip

Net worth is a snapshot, not a one-time number — save this page and re-run it quarterly to track the trend.

Formula

Net worth formula

Net Worth = Total Assets − Total Liabilities

Add up everything you own at current value, subtract everything you owe, and the remainder is your net worth.

Step by step

How the calculation works

1List every asset at its current market or account value: cash, investments, retirement accounts, real estate, and anything else of value.
2List every liability at its current payoff balance: mortgage, auto and other loans, and credit card debt.
3Subtract total liabilities from total assets to get net worth, and compare liquid assets against debt for a stricter liquid net worth figure.

Example

Net worth example

With $550,000 in total assets and $301,000 in total liabilities, net worth is $249,000. Liquid net worth — cash and investments minus all debt — is negative $241,000, since most of the assets are illiquid (retirement accounts and real estate).

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Net Worth Calculator

Calculate your net worth by adding up assets like cash, investments, and property, then subtracting mortgage, loan, and credit card debt.

Formula Verified by Dr. Elizabeth Vance, PhD

How to understand and use this calculator

Quick Answer: What Is Net Worth?

Net worth is Total Assets minus Total Liabilities — everything you own, at current value, minus everything you owe. It is the single number that summarizes your overall financial position better than income, savings rate, or any one account balance alone, because it nets out debt against what that debt actually bought.

A household with $550,000 in assets (cash, investments, retirement accounts, and a home) and $301,000 in liabilities (a mortgage, an auto loan, and credit card debt) has a net worth of $249,000. A recent graduate with $18,000 in assets and $14,500 in student loan and credit card debt has a net worth of $3,500 — smaller, but still positive, which matters more early on than the dollar amount itself.

How to Use This Calculator

Enter each asset at its current market value, not what you paid for it: cash and savings, brokerage investments, retirement accounts (401(k), IRA), your home or other real estate, and a catch-all for vehicles and other property. Then enter each liability at its current payoff balance: mortgage balance, auto and other loans, and credit card debt.

The calculator sums the asset fields into total assets, sums the liability fields into total liabilities, and subtracts to get net worth. It also reports liquid net worth — cash and investments only, minus all liabilities — which strips out illiquid assets like real estate and retirement accounts that you can't quickly convert to cash to cover an obligation.

The Formula This Calculator Uses

$$\text{Total Assets} = \text{Cash} + \text{Investments} + \text{Retirement} + \text{Real Estate} + \text{Other Assets}$$

$$\text{Total Liabilities} = \text{Mortgage} + \text{Loans} + \text{Credit Card Debt}$$

$$\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities}$$

$$\text{Liquid Net Worth} = (\text{Cash} + \text{Investments}) - \text{Total Liabilities}$$

$$\text{Debt-to-Asset Ratio} = \dfrac{\text{Total Liabilities}}{\text{Total Assets}} × 100$$

Worked Example: A Household With a Mortgage

$15,000 cash, $45,000 in brokerage investments, $120,000 in retirement accounts, a $350,000 home, and $20,000 in other assets. Against that: a $280,000 mortgage balance, $15,000 in auto and other loans, and $6,000 in credit card debt.

Total assets: $15,000 + $45,000 + $120,000 + $350,000 + $20,000 = $550,000.

Total liabilities: $280,000 + $15,000 + $6,000 = $301,000.

Net worth: $550,000 − $301,000 = $249,000.

Liquid net worth: ($15,000 + $45,000) − $301,000 = −$241,000. Even with a healthy overall net worth, this household would struggle to cover its debts using only cash and investments — most of the $249,000 is locked up in the house and retirement accounts.

Debt-to-asset ratio: $301,000 ÷ $550,000 × 100 ≈ 54.7%.

Second Worked Example: Starting From Near Zero

A recent graduate with $3,000 cash, $2,000 in a brokerage account, $8,000 in a 401(k), no real estate, and $5,000 in other assets (a car, mostly). Liabilities: $12,000 in student loans and $2,500 in credit card debt (no mortgage).

Total assets: $3,000 + $2,000 + $8,000 + $0 + $5,000 = $18,000.

Total liabilities: $12,000 + $2,500 = $14,500.

Net worth: $18,000 − $14,500 = $3,500.

Liquid net worth: ($3,000 + $2,000) − $14,500 = −$9,500.

Debt-to-asset ratio: $14,500 ÷ $18,000 × 100 ≈ 80.6%. This is a normal starting position — most of the net worth is in a retirement account and a depreciating car, and the debt-to-asset ratio will fall on its own as loan balances shrink and retirement contributions compound, even before any windfall.

Why Liquid Net Worth Matters More Than Total Net Worth

Total net worth answers "how wealthy am I on paper." Liquid net worth answers a more urgent question: "if I lost my income tomorrow, how much of my debt could I actually pay off with money I can access quickly." A retirement account and a home both count toward total net worth, but neither one helps you make next month's minimum payments — a 401(k) withdrawal before 59½ typically carries a 10% penalty plus ordinary income tax, and selling a home takes weeks or months and comes with transaction costs.

It's normal, even expected, for liquid net worth to run negative while total net worth is healthy and rising — that's exactly what happened in both worked examples above. The number becomes a warning sign specifically when it's trending more negative over time with no offsetting growth in total net worth, which usually means new debt is outpacing both saving and asset growth.

How Net Worth Changes Over Time — and What Actually Moves It

Net worth grows through three separate levers, and it helps to know which one is doing the work in your own numbers: paying down debt (which shrinks total liabilities directly), contributing new savings (which grows cash, investment, or retirement balances), and market appreciation (investment growth, retirement account returns, and home price changes, none of which you control month to month).

Because market appreciation is the volatile, uncontrollable piece, many people find it more useful to track net worth quarterly rather than monthly — a single bad month in the stock market can make a genuinely productive month of saving and debt paydown look like a step backward, when the underlying trend is still positive.

What This Number Doesn't Capture

Net worth is a snapshot of value, not of cash flow, income stability, or future earning power — two people with identical net worth can be in very different financial positions if one has a stable salary and the other has none. It also doesn't distinguish good debt from bad debt: a mortgage against an appreciating home and high-interest credit card debt both simply subtract from the total, even though they represent very different financial situations. Asset valuations, especially for real estate and any privately held business interests, are estimates rather than verified market prices, and should be updated periodically rather than assumed to hold steady.

Related Calculators

Net worth is the foundation for longer-range planning: use the retirement calculator or the FIRE calculator to see how today's net worth trajectory turns into a retirement or financial-independence date. If your liquid net worth is negative, building a cash buffer with the emergency fund calculator is usually the first fix, and the savings calculator can model how fast a specific monthly contribution grows your liquid assets from here.

Related concepts

Liquid net worth

Cash and investments minus all liabilities — a stricter measure that excludes illiquid assets like real estate and retirement accounts.

Debt-to-asset ratio

Total liabilities divided by total assets — shows what share of your holdings is offset by debt.

Illiquid asset

An asset like real estate or a retirement account that can't quickly be converted to cash without cost, delay, or penalty.

Balance sheet

A financial statement listing assets and liabilities at a point in time — a personal net worth statement is the household version of this.

Frequently Asked Questions

What counts as an asset for net worth?+

Anything of value you own at its current market value: cash and savings accounts, brokerage and investment accounts, retirement accounts (401(k), IRA), real estate, vehicles, and other significant property. Use current value, not the original purchase price.

What counts as a liability?+

Any debt you currently owe, at its current payoff balance: mortgage balance, auto loans, student loans, personal loans, and credit card balances.

Is a negative net worth bad?+

It's common early in a career, especially with student loans or a recent home purchase, and isn't necessarily alarming on its own. What matters more is the trend — whether net worth is improving over time as debt shrinks and savings grow.

Should I include my home in net worth?+

Yes, at its current estimated market value, with the outstanding mortgage balance listed as a liability. Just remember that home equity is illiquid — that's exactly what the liquid net worth figure is designed to show separately.

What's a good net worth by age?+

There's no single universal benchmark, since it depends heavily on income, region, and family situation. A more useful signal than comparing to a national average is tracking your own net worth's trend quarter over quarter.

Why is my liquid net worth negative even though my total net worth is positive?+

This is common and often not a problem — it usually just means most of your assets are in a retirement account or home equity rather than cash or brokerage accounts. It becomes a concern only if it's trending more negative over time with no growth in total net worth.

Should I count a car as an asset?+

Yes, at its current resale value (not what you paid), listed under other assets. Keep in mind vehicles depreciate, so update this figure periodically rather than leaving it static.

How often should I recalculate my net worth?+

Quarterly is a common cadence — frequent enough to catch meaningful trends, infrequent enough that normal month-to-month market swings in investment or retirement account balances don't create false alarm.

Does net worth include future income like salary?+

No. Net worth is a snapshot of assets and debts you hold today, not a projection of future earnings. Future income affects how fast net worth can grow, but it isn't part of the calculation itself.

What is debt-to-asset ratio and why does it matter?+

It's total liabilities divided by total assets, expressed as a percentage. A high ratio means a larger share of what you own is offset by debt — useful context alongside the raw net worth dollar figure, especially when comparing your position over time.

How the calculation works

1List every asset at its current market or account value: cash, investments, retirement accounts, real estate, and anything else of value.

2List every liability at its current payoff balance: mortgage, auto and other loans, and credit card debt.

3Subtract total liabilities from total assets to get net worth, and compare liquid assets against debt for a stricter liquid net worth figure.

How to understand and use this calculator

Quick Answer: What Is Net Worth?

How to Use This Calculator

The Formula This Calculator Uses

$$\text{Total Assets} = \text{Cash} + \text{Investments} + \text{Retirement} + \text{Real Estate} + \text{Other Assets}$$

$$\text{Total Liabilities} = \text{Mortgage} + \text{Loans} + \text{Credit Card Debt}$$

$$\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities}$$

$$\text{Liquid Net Worth} = (\text{Cash} + \text{Investments}) - \text{Total Liabilities}$$

$$\text{Debt-to-Asset Ratio} = \dfrac{\text{Total Liabilities}}{\text{Total Assets}} × 100$$

Worked Example: A Household With a Mortgage

Total assets: $15,000 + $45,000 + $120,000 + $350,000 + $20,000 = $550,000.

Total liabilities: $280,000 + $15,000 + $6,000 = $301,000.

Net worth: $550,000 − $301,000 = $249,000.

Debt-to-asset ratio: $301,000 ÷ $550,000 × 100 ≈ 54.7%.

Second Worked Example: Starting From Near Zero

Total assets: $3,000 + $2,000 + $8,000 + $0 + $5,000 = $18,000.

Total liabilities: $12,000 + $2,500 = $14,500.

Net worth: $18,000 − $14,500 = $3,500.

Liquid net worth: ($3,000 + $2,000) − $14,500 = −$9,500.

Why Liquid Net Worth Matters More Than Total Net Worth

How Net Worth Changes Over Time — and What Actually Moves It

What This Number Doesn't Capture

Related Calculators

Related concepts

Liquid net worth

Cash and investments minus all liabilities — a stricter measure that excludes illiquid assets like real estate and retirement accounts.

Debt-to-asset ratio

Total liabilities divided by total assets — shows what share of your holdings is offset by debt.

Illiquid asset

An asset like real estate or a retirement account that can't quickly be converted to cash without cost, delay, or penalty.

Balance sheet

A financial statement listing assets and liabilities at a point in time — a personal net worth statement is the household version of this.

Frequently Asked Questions

What counts as an asset for net worth?+

What counts as a liability?+

Any debt you currently owe, at its current payoff balance: mortgage balance, auto loans, student loans, personal loans, and credit card balances.

Is a negative net worth bad?+

Should I include my home in net worth?+

What's a good net worth by age?+

Why is my liquid net worth negative even though my total net worth is positive?+

Should I count a car as an asset?+

Yes, at its current resale value (not what you paid), listed under other assets. Keep in mind vehicles depreciate, so update this figure periodically rather than leaving it static.

How often should I recalculate my net worth?+

Does net worth include future income like salary?+

No. Net worth is a snapshot of assets and debts you hold today, not a projection of future earnings. Future income affects how fast net worth can grow, but it isn't part of the calculation itself.

What is debt-to-asset ratio and why does it matter?+

Net Worth Calculator

Inputs

Results

Net worth formula

How the calculation works

Net worth example

Learn more about this calculation

How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide

Understanding Calculator Formulas: How DTC Turns Inputs into Results

Free Checkbook Register Excel Template

Net Worth Calculator

Inputs

Results

Key output metrics

Assets vs. liabilities

Asset mix

How to understand and use this calculator

Quick Answer: What Is Net Worth?

How to Use This Calculator

The Formula This Calculator Uses

Worked Example: A Household With a Mortgage

Second Worked Example: Starting From Near Zero

Why Liquid Net Worth Matters More Than Total Net Worth

How Net Worth Changes Over Time — and What Actually Moves It

What This Number Doesn't Capture

Related Calculators

Related concepts

Frequently Asked Questions

Net worth formula

How the calculation works

Net worth example

Learn more about this calculation

How to Use Do The Calculation Calculators: A Practical Step-by-Step Guide

Understanding Calculator Formulas: How DTC Turns Inputs into Results

Free Checkbook Register Excel Template

Key output metrics

Assets vs. liabilities

Asset mix

How to understand and use this calculator

Quick Answer: What Is Net Worth?

How to Use This Calculator

The Formula This Calculator Uses

Worked Example: A Household With a Mortgage

Second Worked Example: Starting From Near Zero

Why Liquid Net Worth Matters More Than Total Net Worth

How Net Worth Changes Over Time — and What Actually Moves It

What This Number Doesn't Capture

Related Calculators

Related concepts

Frequently Asked Questions