Net worth = Total Assets − Total Liabilities. It's a snapshot of your financial health: everything you own minus everything you owe. A positive net worth means assets exceed debts; negative means debts exceed assets.

What is a good net worth by age?

Rule of thumb (Thomas Stanley): target net worth ≈ Age × Annual income ÷ 10. At 40 with $80k income: target $320k. These are benchmarks, not requirements — what matters is a consistently growing trend over time.

Should I include my home in net worth?

Yes — include current market value as an asset and your outstanding mortgage as a liability. The equity (home value minus mortgage) contributes to net worth. However, home equity is illiquid — it's worth tracking liquid and illiquid net worth separately.

How often should I calculate my net worth?

Monthly or quarterly. The absolute number matters less than the trend — is it growing? A consistent upward trend (even if slow) indicates healthy financial habits: earning more than spending, reducing debt, investing.

● Your financial health snapshot

Net Worth Calculator

Calculate your net worth in seconds — enter what you own and what you owe to see your complete financial picture.

Net worth = everything you own (assets) minus everything you owe (liabilities). It's the single best snapshot of financial health. Calculate yours now — the number matters less than the trend over time.

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Assets − Liabilities = Net Worth

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Assets — what you own

Cash & savings

Checking accounts

Savings accounts

Emergency fund

Investments

Brokerage / stocks / ETFs

Retirement (401k/IRA/pension)

Crypto / other

Real estate & property

Primary home (market value)

Other real estate

Personal property

Vehicles (resale value)

Other assets

Total Assets—

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Liabilities — what you owe

Mortgages

Mortgage balance

Home equity loan

Vehicle loans

Auto loan balance

Consumer debt

Credit card balances

Personal loans

Student loans

Student loan balance

Other liabilities

Medical debt

Other debts

Total Liabilities—

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Your net worth

Total Assets

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Total Liabilities

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Net Worth

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Debt-to-asset ratio

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How it's calculated

Net worth: the fundamental financial metric

Net worth is the single clearest measure of where you stand financially. It's simply everything you own minus everything you owe: your total assets minus your total liabilities. Assets include cash in checking and savings, investments (stocks, ETFs, retirement accounts), the market value of your home and any other property, and vehicles or valuables you could sell. Liabilities are the debts behind those things — your mortgage, auto loans, student loans, personal loans, and credit card balances.

The single number you get today matters far less than how it moves over time. A net worth snapshot is just one data point; the real signal is the trend. Tracking it monthly or quarterly shows whether your habits are building wealth — spending less than you earn, paying down debt, and investing consistently — or quietly eroding it. A rising line, even a slow one, almost always beats a high but stagnant figure.

A positive net worth means your assets outweigh your debts: a healthy sign that you own more than you owe. A negative net worth means your debts exceed your assets, which is common early in adult life thanks to student loans or a new mortgage. It isn't a verdict on your future — what counts is the direction of travel and whether the gap is closing month after month.

Net Worth = Total Assets − Total Liabilities Debt-to-Asset Ratio = Total Liabilities ÷ Total Assets (lower is better; under 50% is generally healthy)

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Total assets
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Total liabilities
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Net worth = assets − liabilities
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Assets: Everything you own that has monetary value: cash, savings, investments, retirement accounts, property, vehicles, and other valuables.
Liabilities: Everything you owe: mortgage, auto and student loans, personal loans, and outstanding credit card balances.
Net worth: Total assets minus total liabilities — the bottom-line measure of your overall financial position at a given moment.
Liquid assets: Cash and assets convertible to cash quickly without significant loss: checking, savings, publicly traded stocks.
Illiquid assets: Assets that take time or cost money to convert: real estate, retirement accounts (penalties for early withdrawal), business ownership.
Debt-to-asset ratio: What percentage of your assets is funded by debt. Under 50% is generally healthy; above 80% indicates financial vulnerability.

Disclaimer: net worth is a point-in-time estimate. Asset values fluctuate. Personal property values are estimates — consult a professional for formal valuation.

Frequently asked questions

What is net worth?

Net worth = Total Assets − Total Liabilities. Everything you own (cash, investments, home, cars) minus everything you owe (mortgages, loans, credit card balances). It's the fundamental measure of financial health — more meaningful than income alone.

What is a good net worth for my age?

A common benchmark: Annual income × (Age ÷ 10). Example: $80k income at age 40 → target $320k net worth. Millionaire Next Door authors call people above this "prodigious accumulators of wealth." But trends matter more than a single snapshot.

Should I include home equity?

Yes — include home market value as an asset and mortgage balance as a liability. The difference is your home equity. However, home equity is illiquid — note your liquid net worth (cash + investments − debts) separately for financial planning purposes.

What if my net worth is negative?

Common early in adult life — especially with student loans or a new mortgage. What matters is the direction: is it improving? Focus on: (1) increasing income, (2) reducing high-interest debt aggressively, (3) building savings. Track monthly and celebrate the trend turning positive.