Net Worth Calculator
How This Calculator Works
Net Worth = Total Assets - Total Liabilities
Debt-to-Asset Ratio = Total Liabilities / Total Assets
Asset Allocation % = Individual Asset Value / Total Assets x 100Your net worth is the single most important number in personal finance. It represents your total financial position at a given point in time: everything you own minus everything you owe. Tracking your net worth over time is the most reliable way to measure whether you are building wealth or falling behind, regardless of your income level.
The Net Worth Formula
The calculation is straightforward: add up the current market value of all your assets (cash, investments, retirement accounts, real estate, vehicles, and other valuable property), then subtract all your outstanding liabilities (mortgages, student loans, auto loans, credit card balances, and any other debts). The result is your net worth. A positive net worth means you own more than you owe. A negative net worth means your debts exceed your assets — a situation that is common for recent graduates with student loan debt.
How to Use This Calculator
Enter each asset and liability with its current value. Use today's market values rather than original purchase prices. For real estate, use a recent appraisal or an online estimate from services like Zillow. For investment and retirement accounts, use the current balance shown in your brokerage or plan statements. For vehicles, use the current Kelley Blue Book or Edmunds value. You can add or remove line items to match your specific financial situation using the add and remove buttons.
Understanding Your Results
Beyond the net worth number itself, pay attention to your asset allocation and debt-to-asset ratio. A healthy asset allocation diversifies across cash reserves, retirement accounts, and investments rather than concentrating everything in a single asset like your home. The debt-to-asset ratio measures what percentage of your assets is offset by debt. A ratio below 50% is generally considered healthy, while a ratio above 80% signals financial vulnerability.
Benchmarks and Context
According to Federal Reserve data, the median net worth for American households is approximately $192,900, but this varies dramatically by age. Households headed by someone under 35 have a median net worth of about $39,000, while those aged 55-64 have a median around $364,000. Rather than comparing yourself to national averages, focus on growing your own net worth consistently over time. Aim to increase it by 10-25% per year through a combination of debt repayment, regular saving, and investment growth.
Frequently Asked Questions
Related Calculators
Retirement Calculator
Plan how much you need to save for a comfortable retirement.
Compound Interest Calculator
See how your investments grow over time with compound interest.
Debt Payoff Calculator
Create a plan to pay off your debts with snowball or avalanche methods.
401k Calculator
Estimate how much your 401k will grow by retirement.
What You Should Know
Your Net Worth: The Score That Matters Most
Income gets all the attention, but net worth tells the real story of financial health. Plenty of high earners have low or negative net worth due to lifestyle inflation and debt, while many modest earners quietly build substantial wealth through disciplined saving and investing. Tracking your net worth regularly is the most powerful habit you can adopt to stay on track toward financial independence.
The Balance Sheet Mindset
Think of your personal finances like a business balance sheet. Every financial decision either increases your assets, decreases your liabilities, or both. When you make a mortgage payment, you are simultaneously decreasing an asset (cash) and decreasing a liability (loan balance) — with the principal portion moving your net worth upward. When you buy a depreciating asset like a car with debt, you may be increasing both your assets and liabilities, but the asset will lose value faster than the debt decreases.
The Power of Asset Allocation
How your assets are distributed matters almost as much as the total. Financial planners recommend keeping 3-6 months of expenses in cash as an emergency fund, maximizing tax-advantaged retirement accounts, and investing additional savings in a diversified portfolio. Americans with the highest net worth typically have less than 20% of their wealth in their primary residence, with the majority in investment and retirement accounts that compound over time.
Common Net Worth Mistakes
The biggest mistake people make is over-valuing depreciating assets like cars, furniture, and electronics, or counting possessions that have little resale value. Another common error is ignoring retirement accounts because "that money is locked away." Your 401k and IRA balances are absolutely part of your net worth and often represent the largest component of wealth for middle-class families. Finally, failing to account for all debts — including money owed to family members or buy-now-pay-later balances — gives a falsely optimistic picture.