How to Use the Net Worth Calculator
- Enter the current value of your cash, investments, retirement accounts, home, vehicles and other assets.
- Enter your outstanding balances for each debt.
- Press Calculate.
- Review net worth, liquid assets and the debt-to-asset ratio.
- Repeat on a schedule to track progress.
Formula
Net worth = total assets − total liabilities Debt-to-asset ratio = total liabilities ÷ total assets × 100 Liquid assets = cash + taxable investments
Example Calculation
Assets of $495,000 (including a $350,000 home and $80,000 in retirement accounts) minus liabilities of $286,000 (mortgage, auto, student and card debt) give a net worth of $209,000. The debt-to-asset ratio is about 57.8%, and liquid assets are $40,000.
What Is Net Worth?
Net worth is the difference between everything you own and everything you owe. It captures your financial position at a moment in time.
How to Value Your Assets
Use realistic market values, not what you paid. For a home, check recent comparable sales. For vehicles, use a pricing guide. For retirement accounts, use the current balance, remembering that pre-tax accounts will be taxed when withdrawn.
Ways to Grow Net Worth
- Increase income and keep spending steady.
- Pay down high-interest debt.
- Invest regularly in diversified assets.
- Avoid depreciating purchases financed with debt.
Tips
- Track it on the same date each year to compare fairly.
- Separate liquid from illiquid assets so you know what is accessible.
- Pair it with a budget using the budget calculator.
Common Mistakes
- Overestimating the value of a home or collectibles.
- Forgetting smaller debts.
- Fixating on the number instead of the trend.
For a walkthrough, read how to calculate your net worth.