Net Worth Calculator
Calculate your net worth. Total assets minus total liabilities gives you a snapshot of your financial health.
$175,000 of assets against $80,000 of debt gives a net worth of $95,000, of which $25,000 is liquid and $150,000 is tied up in property.
Calculator
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What Is Net Worth?
Net worth is the difference between what you own (assets) and what you owe (liabilities):
Net Worth = Total Assets - Total Liabilities
A positive net worth means you own more than you owe. A negative net worth means you owe more than you own.
Worked example
Using the defaults — $5,000 cash, $20,000 investments, $150,000 property, and $80,000 of debt:
Total the assets. $5,000 + $20,000 + $150,000 = $175,000. Note that the property is counted at its market value, not at the equity you hold in it.
Total the liabilities. $80,000 of debt, which typically means the mortgage remaining on that property plus any other borrowing.
Subtract. $175,000 − $80,000 = $95,000 of net worth. This is the number that matters, and it is unaffected by whether you count the property gross with its mortgage, or count only the equity.
Look at liquidity separately. Cash plus investments is $25,000, against $80,000 of debt. Excluding the house, this household is $55,000 net negative. That is not unusual, and it is not a problem as long as the mortgage is affordable — but it is the figure to look at if the question is "what happens if income stops?" rather than "what am I worth?".
Enter 5000, 20000, 150000 and 80000 above to reproduce the $95,000 result. Track net worth on a fixed date each quarter or year; a single reading tells you almost nothing without the trend.
Net worth versus liquid net worth
The same household at four debt levels, showing how differently the two measures move. Liquid net worth excludes property, and it is the one that matters in a crisis.
| Total debt | Net worth | Liquid net worth | Debt-to-asset ratio | Assessment |
|---|---|---|---|---|
| $0 | $175,000 | $25,000 | 0% | Debt free |
| $40,000 | $135,000 | $25,000 | 23% | Conservative |
| $80,000 (default) | $95,000 | −$55,000 | 46% | Typical mortgage |
| $140,000 | $35,000 | −$115,000 | 80% | Highly leveraged |
Liquid net worth stays at $25,000 regardless of the mortgage because the property and the loan move together. It only turns negative because the property is excluded from the assets while the debt is not — which is exactly the point: illiquid wealth cannot pay a bill.
Common mistakes with this calculation
- Tracking net worth but not liquidity. A household with $95,000 of net worth can still be insolvent in the cash-flow sense. If nearly all the wealth is equity in a house, none of it is available for a medical bill, a job loss or a roof replacement. Track liquid net worth alongside total net worth.
- Counting depreciating assets at purchase price. A car, furniture, electronics and jewellery lose value quickly and are hard to sell at book value. Many people include them at what they paid, which inflates the asset side. Count vehicles at trade-in value, and leave household goods out entirely.
- Marking property to an optimistic value. Zillow estimates and agent opinions both skew high. Using a generous valuation flatters net worth and hides the real leverage. Use a conservative estimate, or a recent appraisal if you have one.
- Forgetting contingent and future liabilities. Outstanding tax owed, a pending legal settlement, deferred student interest and a co-signed loan for a family member are all real claims that may not appear on a standard statement. If you have co-signed anything, that debt belongs on your list.
When this calculator does not apply
- It takes four aggregate inputs. Real balance sheets need receivables, business interests, retirement accounts and contingent liabilities itemised.
- It is a snapshot. Two readings a year apart tell you far more than one reading.
- It does not distinguish between liquid and illiquid assets, which is the difference between solvency and being able to pay next month's bills.
- It says nothing about income, cash flow or the sustainability of the debt you are carrying.
- It excludes the present value of future obligations such as pensions in payment, Social Security entitlements and long-term care risk.
Frequently Asked Questions
What is a good net worth for my age?
Net worth varies widely. A common benchmark is to have net worth equal to your annual income by age 30, 2x by 35, 3x by 40, and so on. But individual circumstances vary greatly.
Should I include my home in net worth?
Yes, include your home equity (home value minus mortgage) as an asset. Some people track "liquid net worth" separately, excluding home equity.
Sources & Methodology
This calculator uses standard financial formulas. See our methodology page for the full formula derivation.
- Survey of Consumer Finances Federal Reserve
- Financial Accounts of the United States Federal Reserve
- Consumer Credit Outstanding Federal Reserve
- Your Insured Deposits Federal Deposit Insurance Corporation
- Consumer Information on Financial Planning Consumer Financial Protection Bureau
Last reviewed .
Key takeaways
- $175,000 of assets against $80,000 of debt is $95,000 of net worth.
- Liquid net worth excludes property and is negative here — that is normal for a mortgaged household.
- Track the trend, not the level. One reading in isolation tells you almost nothing.
- Do not mark assets to optimistic values. Understating net worth is safer than overstating it.
- Co-signed debts and pending tax bills are real liabilities even when they appear on someone else's statement.