Everyday Finance
Net Worth Calculator
Calculate net worth by adding cash, investments, retirement accounts, property, and other assets, then subtracting mortgages and other debts.
Best for: Calculate household net worth by totaling financial and physical assets and subtracting all liabilities.
Your result
Personal net worth estimate
- Estimated net worth
- $450,000.00
- Total assets
- $800,000.00
- Total liabilities
- $350,000.00
- Debt-to-asset ratio
- 43.75%
Assets compared with liabilities
Net Worth Calculator: formula, examples, and planning guide
Net worth is a personal balance sheet: the current value of everything you own minus the current balance of everything you owe.
Net worth formula and a worked example
The formula is net worth = total assets − total liabilities. If cash, investments, retirement accounts, property, and other assets total $800,000 while mortgages and other debts total $350,000, estimated net worth is $450,000.
Use current market values for assets rather than purchase prices, and use current payoff balances for liabilities rather than original loan amounts.
What belongs on a personal net worth statement
Include material assets and debts that would change the financial picture. Avoid adding income, monthly expenses, insurance death benefits, or future inheritances as current assets.
| Assets | Liabilities |
|---|---|
| Cash and savings | Mortgages and home-equity debt |
| Taxable investments | Credit card balances |
| Retirement accounts | Student and auto loans |
| Real estate and valuable property | Other outstanding debt |
How to track net worth without chasing the number
Net worth is most useful as a trend measured consistently. Monthly or quarterly updates can reveal whether saving, investing, debt reduction, and asset prices are moving the balance sheet in the intended direction.
- Use the same valuation method each time.
- Separate market-driven changes from contributions and debt payments.
- Pair net worth with cash flow and liquidity; a high net worth can still be hard to access.
How to use this net worth calculator
Use this net worth calculator to build a point-in-time personal balance sheet. Consistent valuation matters more than precision: use current defensible asset values and payoff balances, then update the same categories over time.
- 1
Add liquid and investment assets
Enter cash, taxable investments, and retirement accounts without double counting linked holdings.
- 2
Add property and other assets
Use current market estimates for real estate and significant assets rather than original purchase prices.
- 3
Subtract every liability
Enter mortgage payoff amounts, cards, student loans, and other debts to calculate net worth.
Worked planning example
Example: measure progress beyond portfolio returns
Set up
Enter all household assets and liabilities at the same month-end date.
Compare
Update the balance sheet one quarter later using the same valuation method.
Takeaway
Net-worth change captures saving, debt reduction, and asset values together, providing a broader measure than investment performance alone.
Track consistently and avoid double counting
A repeatable balance sheet is more useful than an inflated or frequently reclassified estimate.
- Use payoff balances for debt.
- Separate ownership value from financed value.
- Document valuation sources for illiquid assets.
Calculation methodology and assumptions
Net worth equals total assets minus total liabilities. Use current market values for assets and current payoff balances for debt. The debt-to-asset ratio divides liabilities by assets to show how much of the balance sheet is financed by debt.
Frequently asked questions
What counts as an asset?
Cash, investments, retirement accounts, property, business interests, and other items with defensible economic value can be included.
Should I include my home?
Yes, if you include its current value and separately include the outstanding mortgage liability.
How often should net worth be updated?
Monthly or quarterly is often enough for planning; use a consistent date and valuation method.
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