Net Worth Calculator

What is net worth?

A net worth calculator adds the value of your assets and subtracts your debts. The result is a snapshot of your financial position: what you own after accounting for what you owe.

Assets can include cash and savings, investments, retirement accounts, a home, vehicles and other property. Debts can include a mortgage, auto loans, student loans, credit card balances and other amounts you owe. The calculator uses the values and balances you enter; it does not verify them or estimate their future value.

Why net worth matters

Net worth can help you see whether your finances are changing over time. A growing result may reflect saving more, paying down debt, or changes in the value of your assets. A falling result can prompt you to check whether debt has increased, an asset value has changed, or a major expense affected your savings.

This measure can give context to decisions about buying a home, taking on a loan, changing your savings plan or preparing for retirement. It is not the same as income or cash flow. A home may add substantial value to your net worth, but that value is not cash you can readily spend. Likewise, a person can have a positive net worth and still have difficulty covering bills if much of their wealth is tied up in property or retirement accounts.

For retirement or investment decisions, confirm your plan with a qualified professional.

How to use this net worth calculator

1. Gather current account balances and loan statements. Use amounts that reflect your finances on the same date, so the result is a useful snapshot.
2. Enter your cash and savings, investments and retirement accounts. Use the balances shown by your financial institutions.
3. Enter the current value of your home, vehicles and other assets. For property values, use a reasonable current estimate rather than the price you hope to receive.
4. Enter the outstanding balances for your mortgage, auto loans, student loans, credit cards and other debts. Use the amount still owed, not the original amount borrowed.
5. Check that each asset or debt appears only once. The calculator totals the assets, totals the debts and subtracts total debts from total assets.
6. Review the result and the asset and debt totals. Save the figures if you want to compare this snapshot with a later calculation.

Net worth calculator example

How to read your net worth result

A positive result means your listed assets exceed your listed debts. A negative result means the debts you entered exceed the assets you entered. Neither result explains the whole story by itself. Your income, monthly expenses, access to savings and financial goals also affect the choices available to you.

Look at the totals as well as the final figure. If debt is a large part of the picture, review the balances and interest costs before deciding how to direct extra money. If assets are concentrated in a home or retirement account, remember that those funds may not be available for everyday expenses without a sale, withdrawal or other financial decision.

How to improve your net worth

1. 01

   Build savings consistently

   Set an automatic transfer from your checking account to savings after payday. A steady habit can add to your assets while keeping money available for unexpected costs.

2. 02

   Pay down costly debt

   Review credit card and loan statements, then direct extra payments toward a balance that is expensive to carry. Keep required payments current and check how additional payments affect the loan terms.

3. 03

   Review retirement contributions

   Check your retirement account contributions against your budget and long-term plans. Consider whether a change is workable, and confirm the tax and retirement effects with a qualified professional.

4. 04

   Keep asset estimates grounded

   Update home, vehicle and other asset values using reasonable current estimates. Do not count a hoped-for sale price as money already in your account.

5. 05

   Avoid taking on debt without a plan

   Before financing a purchase, compare the payment and total borrowing cost with your budget and goals. A purchase can add an asset, but the related loan also adds a debt.

Common net worth mistakes

• Using outdated balances

  Old account or loan figures can make the result misleading. Use recent statements and record the date of your calculation.

• Counting the same item twice

  If an account is included in a combined balance, do not also enter it as a separate asset. Check each entry before relying on the total.

• Leaving out debts

  Include balances you owe, even if they are not tied to a visible asset. Missing a credit card or personal debt makes net worth appear higher than it is.

• Treating net worth as spendable cash

  The result combines assets with different levels of access. A home or retirement account may contribute to net worth but may not be available to pay a current bill.

The net worth formula

Key terms

Assets

Things of value that you own, including money, investments and property.

Liabilities

Debts and other amounts you owe. In this calculator, they are entered as debts.

Net worth

Total assets minus total liabilities.

Home equity

The portion of a home's value that remains after accounting for the mortgage balance.