Net worth is what you own minus what you owe. Calculating it takes about twenty minutes.
Step 1: List your assets
- Cash and savings accounts
- Taxable investments
- Retirement accounts
- Home value
- Vehicles and other valuables
Step 2: List your liabilities
- Mortgage balance
- Auto loans
- Student loans
- Credit card balances
- Other debts
Step 3: Subtract
Net worth = total assets − total liabilities. The net worth calculator does the sums and shows your asset mix.
Valuing assets honestly
Use market value, not purchase price. Check recent sales of similar homes and a pricing guide for vehicles. Pre-tax retirement balances will be taxed when withdrawn, so some people discount them.
Track the trend
A single number matters less than direction. Recalculate once or twice a year on the same date. If your net worth is flat, look at your cash flow with the budget calculator; if debt is the drag, the debt payoff calculator can map a way out.