Net Worth Calculator · Practical guide
How to Calculate Net Worth Step by Step
Net worth = total assets minus total liabilities. Here is the process, with real numbers.
At a glance
The Formula
Net worth is simply everything you own minus everything you owe: Net Worth = Total Assets − Total Liabilities. If the result is positive, you own more than you owe; if negative, your debts exceed your assets.
Interactive tool
Net Worth Calculator
Enter your own values, then compare the result with the examples below.
Assets
Liabilities
Asset Breakdown
Liability Breakdown
Suggestion
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Step 1: Add Up Your Assets
List everything of value at its current market value — not what you paid for it:
- Home and other real estate
- Vehicles
- Checking and savings accounts
- Investments and brokerage accounts
- Retirement accounts (401k, IRA)
- Valuable personal property
Step 2: Add Up Your Liabilities
List every outstanding balance: mortgage, car loans, student loans, credit card balances, personal loans, and any other debt.
Step 3: Subtract — Worked Example
| Category | Item | Amount |
|---|---|---|
| Assets | Home + vehicles + savings + retirement | $515,000 |
| Liabilities | Mortgage + car loan + credit cards | $275,000 |
| Net Worth | $515,000 − $275,000 | $240,000 |
In this example: assets of $350,000 (home) + $20,000 (vehicles) + $25,000 (savings) + $120,000 (retirement) = $515,000. Liabilities of $260,000 (mortgage) + $12,000 (car loan) + $3,000 (credit cards) = $275,000. The difference is a net worth of $240,000. Enter your own numbers in the calculator above — add as many asset and liability rows as you need — to get your totals, percentage breakdowns, and a personalized suggestion.
Frequently Asked Questions
Should I use purchase price or current value for assets?
Always use current market value — what the asset would sell for today. Your home's current estimated value and your car's current resale value give a true picture of net worth.
Do I include my 401k in net worth even though it is taxed later?
Yes, include the full balance. Some people prefer to also track an after-tax estimate, but the standard convention is to count retirement accounts at their current balance.
How often should I recalculate my net worth?
Quarterly is a good rhythm for most people, and once a year at minimum. Tracking the trend over time matters more than any single number.
Does income count toward net worth?
No. Income is a flow, not a stock — it only affects net worth indirectly when you save it or use it to pay down debt. A high earner with big debts can have a lower net worth than a modest earner with savings.