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Investing & Retirement
Net Worth Calculator — Assets Minus Liabilities, the Real Number
The single number that tells you whether you're actually building wealth
Your net worth is the cleanest one-number snapshot of your financial health. Income tells you what flows in each month, but it's easy to earn a big paycheck and still go nowhere. Net worth strips away the noise and answers the real question: if you sold everything you own and paid off everything you owe, what would be left?
The formula is simple: Net worth = total assets − total liabilities.
Assets are everything you own that has value: cash in checking and savings, taxable investments (brokerage, stocks, ETFs), retirement accounts (401(k), IRA, Roth), the market value of your home, the resale value of your vehicles, and anything else worth real money. Liabilities are everything you owe: your mortgage balance, auto loans, student loans, credit card balances, and any other debt.
Here's a worked example. Say you have $8,000 in checking and savings, $25,000 in a brokerage account, $60,000 in a 401(k), a home worth $340,000, and a car worth $18,000 — that's $451,000 in assets. On the debt side you owe $255,000 on the mortgage, $12,000 on the car loan, $22,000 in student loans, and $4,000 on credit cards — $293,000 in liabilities. Your net worth is 451,000 − 293,000 = $158,000.
A few things people get wrong. First, use the market value of your home and cars, not what you paid. A car you bought for $30,000 might only be worth $18,000 today — and your net worth should reflect that. Second, subtract the full loan balance, not the monthly payment. The mortgage line is the payoff amount you'd owe today, not your $1,800/month payment. Third, don't count income or future earnings as assets — net worth is a point-in-time photograph of what you have right now, not what you'll make.
One reassurance: a negative net worth is completely normal early on. A new grad with $40,000 in student loans and $2,000 in the bank has a net worth of −$38,000, and that's fine. The goal isn't to be positive on day one — it's to watch the number climb over time. Recalculate every few months. Net worth going up means you're building real wealth, even in years when the paycheck feels tight.
This is an informational estimate, not financial advice. Use it to track your progress, not to make irreversible money decisions.
📖 See also: How Much Should You Have Saved by Each Age?
Calculator
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📰 Formula
• Total assets = cash + investments + retirement + home value + vehicles + other assets • Total liabilities = mortgage + auto loans + student loans + credit cards + other debt • Net worth = total assets − total liabilities • A negative result (owe more than you own) is common early on
📰 Formula
• Total assets = cash + investments + retirement + home value + vehicles + other assets • Total liabilities = mortgage + auto loans + student loans + credit cards + other debt • Net worth = total assets − total liabilities • A negative result (owe more than you own) is common early on
🧪 Worked examples
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Example 2
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Example 3
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Example 4
⚠️ Common mistakes
- Using the purchase price of a home or car instead of today's market value.
- Subtracting the monthly payment instead of the full remaining loan balance.
- Counting future income, salary, or a pension you haven't received as an asset.
- Forgetting credit card balances or small debts, which inflates the result.
💡 Tips
- Pull real balances from your bank, brokerage, and loan statements for accuracy.
- Recalculate quarterly — the trend matters far more than any single number.
- Home equity (home value minus mortgage) is often your biggest net-worth driver.
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❓ Frequently asked questions
How do I calculate my net worth?
Add up everything you own (cash, investments, retirement, home, cars) to get total assets, add up everything you owe (mortgage, loans, credit cards) to get total liabilities, then subtract: net worth = assets − liabilities.
Is it bad to have a negative net worth?
No, especially early in life. A recent grad with student loans and little savings often has a negative net worth. What matters is the trend — the number should rise over time as you pay down debt and build savings.
Should I include my home in my net worth?
Yes. Use the home's current market value as an asset and the remaining mortgage balance as a liability. The difference (home equity) is part of your net worth. For most homeowners it's the single largest piece.
Do I count my 401(k) and IRA in net worth?
Yes. Retirement accounts like a 401(k), traditional IRA, or Roth IRA are assets — use their current balance. Some people track a pre-tax and after-tax version, but the simplest approach is to use the account balance as shown.
Should I use my car's purchase price or current value?
Always use current market value, not what you paid. Cars lose value fast, so a $30,000 car bought three years ago might be worth $18,000 today. Check a site like Kelley Blue Book for a realistic resale estimate.
Does net worth include my monthly income or salary?
No. Net worth is a snapshot of what you own minus what you owe at one moment. Income is a flow, not an asset. Your salary affects how fast net worth grows, but it isn't counted in the number itself.
What is a good net worth for my age?
It varies widely, but a common rule of thumb is net worth ≈ (age × pre-tax income) ÷ 10. At 40 earning $80,000, that suggests around $320,000. Treat it as a loose benchmark, not a hard target — circumstances differ.
How often should I calculate my net worth?
Quarterly is a good rhythm for most people — often enough to spot trends, rare enough that market swings don't drive you crazy. Recalculate after big events too, like buying a home, paying off a loan, or a market drop.
Should I subtract the full loan balance or my monthly payment?
The full remaining balance. A liability is the total amount you'd owe to pay it off today — the payoff figure on your statement — not the $1,800-a-month payment. Using the monthly payment would massively understate your debt.