How to Calculate Your Net Worth
Net worth is the single most important measure of personal financial health. It is calculated by subtracting everything you owe (liabilities) from everything you own (assets). A positive and growing net worth indicates financial progress. Tracking net worth monthly or quarterly reveals trends that income and spending alone cannot show.
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Formula
Net Worth Calculator
Calculate your net worth by subtracting total liabilities from total assets.
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Worked Example
Given:
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FAQs
What should I include as assets?
Include cash and savings accounts, investment accounts, retirement accounts, current market value of property and vehicles, business ownership interests, and valuable personal property. Use current market values, not purchase prices or book values.
What is a good net worth for my age?
A common benchmark is to have a net worth equal to your annual salary by age 30, three times your salary by 40, and six times by 50. However, these are averages — net worth varies enormously based on income, location, family circumstances, and financial decisions. Your own upward trend matters more than comparison to others.
How often should I calculate my net worth?
Calculating net worth quarterly or monthly gives you a clear picture of financial progress. Many people track it monthly using a simple spreadsheet. Seeing net worth grow steadily — even slowly — is one of the most motivating aspects of personal finance management.