Finance
Net Worth Calculator
Net worth = total assets − total liabilities. Add up what you own and what you owe to see your net worth, the split between the two, your debt-to-asset ratio, and how you compare to US net worth by age.
What you own
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What you owe
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Your net worth
$221,000
$515,000 assets − $294,000 debts
Assets $515,000Liabilities $294,000
Total assets
$515,000
Total liabilities
$294,000
Debt-to-asset
57%
Biggest asset
Home & real estate
Use current market values for assets and current balances for debts. A snapshot in time — recalculate as things change.
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The basics
What is net worth?
Net worth is the single clearest measure of your financial position — everything you own, minus everything you owe. Two ideas frame it.
assets − liabilities
It is a snapshot, not a flow
Net worth captures where you stand at one moment. It is not your income — a high earner who spends it all can have a lower net worth than a modest earner who saves.
$515,000 owned − $294,000 owed = $221,000
the trend is the point
Direction beats the number
A single figure means little in isolation. Tracked over time, the trend shows whether you are building wealth or slipping — the real signal in the number.
Recalculate twice a year and watch it climb
Method
How to calculate net worth
Four steps, and only the first two take any effort.
- 1
List and total your assets
Write down the current value of everything you own — accounts, investments, property, vehicles — and add them up.
assets = $515,000 - 2
List and total your liabilities
Write down the current balance of every debt — mortgage, loans, credit cards — and add them up.
liabilities = $294,000 - 3
Subtract to get net worth
Net worth is simply assets minus liabilities. Positive means you own more than you owe; negative means the reverse.
$515,000 − $294,000 = $221,000 - 4
Track it over time
The single number matters less than its direction. Recompute periodically and watch the trend, not the day-to-day.
debt-to-asset = 57%
Worked examples
Three profiles, three net worths
The same formula across very different life stages.
| Profile | Assets | Liabilities | Net worth |
|---|---|---|---|
| Young renter | $35,000 | $34,000 | $1,000 |
| Homeowner family | $515,000 | $294,000 | $221,000 |
| Near retirement | $1,350,000 | $60,000 | $1,290,000 |
Where it shows up
Why it matters
Three places your net worth is the number that counts.
the big picture
Financial health
Net worth rolls savings, debt, investments and property into a single figure — the fastest read on whether your finances are moving forward.
One number that captures it all
lenders look
Big applications
Lenders reviewing a mortgage or large loan want a picture of your assets and debts. A net-worth statement is exactly that.
Mortgages and large loans ask for it
goal setting
Tracking progress
Setting a net-worth target and watching it each year turns vague intentions into a concrete, measurable goal.
A target to grow toward each year
Reference
What counts on each side
Use current market values for assets and current payoff balances for debts.
Assets — what you own
- Cash & bank accounts — Checking, savings, cash on hand
- Investments — Brokerage: stocks, funds, bonds, crypto
- Retirement accounts — 401(k), IRA, pension value
- Home & real estate — Market value of property you own
- Vehicles — Cars, boats — resale value
- Other assets — Business, valuables, anything else
Liabilities — what you owe
- Mortgage — Balance owed on your home
- Auto loans — Balance owed on vehicles
- Student loans — Total student debt
- Credit cards — Balances you carry
- Other debts — Personal loans, medical, anything else
Worth knowing
Five things about net worth
Small clarifications that keep the number honest.
market value, not cost
Value assets today
Use what an asset would sell for now, not what you paid. Cars fall; homes and investments move both ways.
equity, not the whole house
Property is net of its loan
Counting the home as an asset and the mortgage as a liability captures your equity automatically — do not double count.
liquid vs illiquid
Not all net worth spends easily
Home equity and retirement accounts are real but hard to tap quickly. Two people with the same net worth can have very different flexibility.
depreciating assets
Some assets shrink
Vehicles and gadgets lose value every year. Listing them at resale value keeps the figure realistic.
exclude income
It is a balance, not a paycheck
Salary is not part of net worth. It is the flow that builds assets and clears debt over time.
compare to yourself
Benchmarks are rough
Age benchmarks vary hugely by region and circumstance. Your own trend is the benchmark that matters.
Quick chart
US net worth by age
Approximate US household figures from the Federal Reserve Survey of Consumer Finances (2022). The mean sits far above the median because the wealthiest households pull the average up.
| Age of head | Median net worth | Mean net worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35–44 | $135,600 | $549,600 |
| 45–54 | $247,200 | $975,800 |
| 55–64 | $364,500 | $1,566,900 |
| 65–74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: Federal Reserve SCF 2022. Median is the typical household; mean is the average. Rounded.
How we calculate this
The formula and our assumptions
Net worth is one subtraction; the ratios are simple divisions on top.
net worth = assets − liabilities
The core figure
Every asset value is summed, every liability balance is summed, and the second is subtracted from the first. Negative results are shown as-is.
debt-to-asset = liabilities ÷ assets
The ratio
Liabilities as a percent of assets — how much of what you own is financed by debt. It falls as you pay down loans and build equity.
- Assets should be entered at current market value; liabilities at current payoff balance.
- Home equity is captured by listing the home as an asset and the mortgage as a liability.
- The figure is a snapshot; income and spending are not part of it.
Sources
Where the numbers come from
- Federal Reserve — Survey of Consumer Finances (2022), net worth by age of head of household.
- Consumer Financial Protection Bureau — assets, liabilities and financial well-being.
- Standard definition of net worth as total assets minus total liabilities.
FAQ
Common questions
Net worth = total assets − total liabilities. Add up everything you own — cash, investments, retirement accounts, your home, vehicles — then subtract everything you owe — mortgage, car loans, student loans, credit cards. In the example, $515,000 of assets minus $294,000 of debts gives a net worth of $221,000.
Anything you own that has value: cash and bank balances, investments (stocks, funds, bonds, crypto), retirement accounts like a 401(k) or IRA, the market value of your home and any other property, vehicles at their resale value, and other valuables or business interests. Use current market value, not what you paid.
Everything you owe: the outstanding balance on your mortgage, auto loans, student loans, credit-card balances you carry, personal loans, medical debt, and any other money owed. Use the current payoff balance, not the original loan amount.
It varies widely. As a rough US benchmark from the Federal Reserve, median household net worth is about $39,000 under 35, $247,200 for ages 45–54, and $409,900 for 65–74. Means are far higher because wealthy households pull the average up. The chart on this page lists both — but your own trajectory matters more than any single benchmark.
A negative net worth means you owe more than you own, which is common early in adult life — student loans and a fresh mortgage can outweigh modest savings. It is a starting point, not a verdict. As you pay down debt and build assets, it climbs and eventually crosses zero.
Yes — include the home's current market value as an asset and the remaining mortgage as a liability. The difference is your home equity, which is part of your net worth. In the example the $350,000 home against a $260,000 mortgage adds $90,000 of equity.
It is your total liabilities divided by your total assets, as a percent — how much of what you own is financed by debt. In the example, $294,000 ÷ $515,000 is 57%. A lower ratio means more of your wealth is truly yours; it falls over time as you pay down loans.
Once or twice a year is plenty for most people — often enough to see the trend, not so often that normal market swings feel alarming. Tracking the same figure over time is the real value: the direction and speed of change tell you far more than any single snapshot.
No. Net worth is a snapshot of what you own minus what you owe at one moment — a stock, not a flow. Income is separate: it is what flows in over time and helps you build assets or pay down debt, both of which then raise your net worth. A high income with high spending can still leave a low net worth.
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Ugo CharlesBuilt and fact-checked against our editorial standards · Last updated June 2026
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