Net Worth Calculator
Track your assets and liabilities to calculate your net worth
How to use this calculator
Calculating your net worth provides a clear snapshot of your financial health. Follow these steps to get an accurate picture of where you stand financially.
- List your assets: Enter the current value of everything you own. Include cash in checking and savings accounts, investment accounts, retirement funds, the market value of your home, vehicles, and any other valuable property.
- List your liabilities: Enter all outstanding debts. Include your mortgage balance, car loans, student loans, credit card balances, personal loans, and any other money you owe.
- Review your results: The calculator automatically subtracts your total liabilities from your total assets to display your net worth. A positive number means you own more than you owe.
- Track over time: Record your net worth monthly or quarterly to track your financial progress. Many people create a simple spreadsheet to monitor changes over time.
Be honest and thorough when entering values. The more accurate your inputs, the more useful the calculation becomes for financial planning.
Understanding net worth and why it matters
Net worth is arguably the single most important number in personal finance. While income measures how much money flows in, net worth measures how much wealth you have actually accumulated. Understanding and tracking this number can transform your financial decision-making.
The big picture of financial health
Your net worth tells a story that individual account balances cannot. Someone earning $200,000 per year but carrying $500,000 in debt is in a worse financial position than someone earning $50,000 with $100,000 in savings and no debt. Net worth captures this complete picture by balancing what you own against what you owe.
Assets: what counts and what does not
Assets include anything of monetary value that you own. Liquid assets like cash and investments can be quickly converted to spending money. Illiquid assets like real estate and vehicles have value but take time to sell. Some financial advisors suggest tracking both total net worth and liquid net worth separately, since you cannot easily access home equity for daily expenses.
Liabilities: understanding different types of debt
Not all debt is equally problematic. Mortgage debt is often considered "good debt" because it builds equity in an appreciating asset. High-interest credit card debt is typically the most damaging to net worth growth because interest compounds against you. Student loans fall somewhere in between, potentially enabling higher earnings but requiring careful management.
The power of tracking progress
Regular net worth calculations reveal whether your financial decisions are working. A steadily increasing net worth indicates that you are building wealth over time. Stagnant or declining numbers signal a need to adjust your spending, saving, or debt repayment strategies. This feedback loop makes net worth tracking one of the most powerful tools in personal finance.
Practical examples
These examples illustrate how net worth calculations work for people at different life stages.
Example 1: Recent college graduate
Sarah is 24 with $3,000 in savings, a car worth $8,000, and $35,000 in student loans. Her total assets are $11,000 and her total liabilities are $35,000, giving her a net worth of negative $24,000. This is typical for recent graduates. By tracking her net worth monthly, she can watch her student loans shrink while her savings grow.
Example 2: Mid-career professional
Michael is 42 with $25,000 in savings, $180,000 in retirement accounts, a home worth $350,000, and two cars worth $40,000. He owes $220,000 on his mortgage and $12,000 on a car loan. His total assets are $595,000 and his liabilities are $232,000, giving him a net worth of $363,000.
Example 3: Approaching retirement
Linda is 58 with $50,000 in savings, $650,000 in retirement accounts, a paid-off home worth $400,000, and a car worth $15,000. She has no debt. Her total assets of $1,115,000 equal her net worth since she owes nothing. This strong position gives her options for retirement planning.
The net worth formula
Net Worth = Total Assets - Total Liabilities
Assets: Cash, investments, retirement accounts, property, vehicles, valuables
Liabilities: Mortgages, car loans, student loans, credit cards, any debt
The formula is simple, but accurate calculation requires honest assessment of asset values and complete accounting of all debts. Use current market values for assets, not what you paid for them. Include all debt, even uncomfortable amounts like credit card balances.
Frequently Asked Questions
What is a good net worth for my age?
According to the Federal Reserve's Survey of Consumer Finances, median net worth varies significantly by age. Americans under 35 have a median net worth of approximately $13,900, while those aged 35-44 have around $91,300. By ages 45-54, the median rises to $168,600, and those 55-64 have approximately $212,500. A commonly cited rule suggests your net worth should equal your annual salary by age 30, twice your salary by 40, three times by 50, and so on. However, these are just guidelines. Focus on consistent growth rather than hitting specific numbers, as individual circumstances like cost of living, career path, and family obligations vary widely.
Should I include my home value in net worth?
Yes, you should include your home's current market value as an asset and your remaining mortgage balance as a liability. The difference represents your home equity. However, financial planners often recommend calculating two figures: total net worth (including home equity) and liquid net worth (excluding home equity). Liquid net worth gives you a clearer picture of accessible wealth since you cannot easily tap into home equity without selling, refinancing, or taking out a home equity loan. For retirement planning purposes, liquid net worth is often more relevant for understanding how much you can actually spend.
Is negative net worth normal?
Yes, negative net worth is surprisingly common and nothing to be ashamed of. According to Federal Reserve data, approximately 15% of American households have zero or negative net worth. This is particularly common among young adults who have student loan debt but have not yet had time to accumulate significant assets. Recent graduates often start their careers with negative net worth due to education debt, which can exceed $50,000 or more. The key is not your starting point but your trajectory. Track your net worth regularly and focus on moving it in a positive direction through debt reduction and savings accumulation.
How often should I calculate my net worth?
Most financial advisors recommend calculating your net worth monthly or quarterly. Monthly tracking provides regular feedback on your financial decisions and helps you catch problems early. Quarterly tracking is less time-intensive while still showing meaningful trends. Avoid calculating daily or weekly, as short-term market fluctuations can cause unnecessary stress and may lead to poor financial decisions based on temporary changes. Many people find it helpful to schedule a recurring date, like the first of each month, to update their net worth calculation. Consistency matters more than frequency for long-term wealth building.
Do retirement accounts count in net worth?
Absolutely. Retirement accounts like 401(k)s, IRAs, Roth IRAs, 403(b)s, and pensions are important assets that should be included in your net worth calculation. Use the current balance shown in your account statements. Some financial planners suggest calculating an after-tax net worth by reducing traditional retirement account balances by your expected tax rate since you will owe taxes on withdrawals. For example, if you have $100,000 in a traditional 401(k) and expect a 25% tax rate in retirement, the after-tax value would be $75,000. This provides a more realistic picture of your spendable wealth.
How do student loans impact net worth?
Student loans directly reduce your net worth since they are liabilities subtracted from your assets. The average student loan debt for 2024 graduates exceeds $30,000, and many borrowers carry $50,000 or more. This debt can result in negative net worth for years after graduation. However, education debt is often considered an investment since college graduates typically earn higher salaries over their careers. The key is managing student loans strategically: consider income-driven repayment plans if struggling, refinance if you can get better rates, and prioritize paying off high-interest loans first while still building emergency savings and retirement contributions.
How can I improve my net worth?
Improving net worth requires a two-pronged approach: increasing assets and decreasing liabilities. For assets, maximize retirement account contributions (especially to capture employer matches), build an emergency fund of three to six months of expenses, and invest additional savings in diversified index funds for long-term growth. For liabilities, focus on eliminating high-interest debt first, particularly credit cards with rates above 15%. Use strategies like the debt avalanche (highest interest first) or debt snowball (smallest balance first) method. Additionally, increase your income through raises, promotions, side hustles, or career changes. Small improvements in all three areas compound significantly over time.
What is the difference between net worth and income?
Income and net worth measure fundamentally different aspects of financial health. Income is the flow of money you receive over time, typically measured annually. Net worth is the total accumulated wealth at a single point in time. High income does not guarantee high net worth. Someone earning $200,000 per year but spending $190,000 and carrying $300,000 in debt may have lower net worth than someone earning $60,000 who saves diligently and avoids debt. NerdWallet research shows that wealth-building depends more on the gap between income and spending than on income alone. Focus on increasing the spread between what you earn and what you spend, then invest the difference wisely.
Tips for building net worth
Building net worth requires discipline and strategic planning. These evidence-based strategies can accelerate your wealth-building journey.
Pay down high-interest debt first
According to the Federal Reserve, the average credit card interest rate exceeds 20%. High-interest debt compounds against you, making it nearly impossible to build wealth while carrying significant balances. Prioritize paying off credit cards and other high-rate loans before focusing on investments. Once eliminated, redirect those payments toward savings and investments to accelerate asset growth.
Increase your savings rate
NerdWallet research indicates that your savings rate matters more than investment returns for building early wealth. Aim to save at least 15-20% of your gross income. Automate transfers to savings and investment accounts so you pay yourself first before discretionary spending. Even small increases in your savings rate, such as an additional 1% each year, compound dramatically over decades.
Invest consistently for the long term
Regular investing through dollar-cost averaging reduces timing risk and builds wealth steadily over time. Contribute to employer-sponsored retirement plans, especially if your company offers matching contributions, which represent an immediate 50-100% return on your investment. For additional savings, low-cost index funds provide diversified exposure to market growth without requiring expertise in stock selection.
Did you know?
- The median net worth of Americans under 35 is approximately $13,900.
- About 15% of Americans have zero or negative net worth.
- Net worth typically grows slowly until age 40, then accelerates as compound growth takes effect.
- Home equity accounts for nearly two-thirds of the average American's net worth.
- The wealthiest 1% of Americans hold more wealth than the entire middle class combined.