💰 Net Worth Calculator

Understanding Your Net Worth

Net worth is one of the most important financial metrics you can track. It represents your true financial position by calculating the difference between everything you own (assets) and everything you owe (liabilities). Unlike income, which can fluctuate, net worth provides a comprehensive snapshot of your financial health and progress over time.

What is Net Worth?

Net Worth = Total Assets - Total Liabilities

Your assets include cash, investments, real estate, vehicles, and other valuable possessions. Your liabilities include mortgages, loans, credit card debt, and any other money you owe. A positive net worth means you own more than you owe, while a negative net worth indicates you owe more than you own.

Why Track Your Net Worth?

• Measure Financial Progress: Tracking net worth over time shows whether you're building wealth or accumulating debt
• Set Financial Goals: Understanding your current position helps you set realistic goals for the future
• Make Better Decisions: Knowing your net worth helps you make informed decisions about major purchases, investments, and debt management
• Plan for Retirement: Your net worth is a key indicator of retirement readiness
• Track Debt Reduction: See how paying off debt improves your overall financial position

What Counts as Assets?

• Cash & Savings: Checking accounts, savings accounts, money market accounts, and cash on hand
• Investments: Stocks, bonds, mutual funds, ETFs, retirement accounts (401k, IRA), and other investment accounts
• Real Estate: Your home's current market value (not what you paid), rental properties, and land
• Vehicles: Current market value of cars, motorcycles, boats, and other vehicles
• Other Assets: Valuable collectibles, jewelry, business equity, and other assets that could be sold

What Counts as Liabilities?

• Mortgages: Remaining balance on your home loan
• Auto Loans: Remaining balance on vehicle loans
• Student Loans: Outstanding balance on education loans
• Credit Card Debt: Total balances on all credit cards
• Personal Loans: Any other outstanding loans or debts

Improving Your Net Worth

Increase Assets: Save more, invest wisely, pay down debt, and make smart purchases that hold or increase in value.

Decrease Liabilities: Pay off high-interest debt first, avoid unnecessary loans, and live within your means.

Track Regularly: Calculate your net worth monthly or quarterly to monitor progress and adjust your strategy as needed.

Important Notes

Use current market values for assets (what you could sell them for today), not what you paid. For your home, use recent comparable sales or online estimates. For vehicles, use current market value from sources like Kelley Blue Book. Be honest about all debts - only by facing the full picture can you make real progress. This calculator is for personal financial planning and should not replace professional financial advice.