Net Worth Calculator
Get an honest picture of your financial health. Add up your cash, investments, and home value, then subtract your mortgages and debts to reveal your true net worth.
Quick Answer: How is net worth calculated?
Net worth is calculated using a single, simple financial equation: Assets minus Liabilities. Assets are everything you own of value (checking accounts, stock portfolios, real estate). Liabilities are everything you owe to others (mortgages, auto loans, credit card debt). By subtracting what you owe from what you own, you are left with your true, personal Net Worth.
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Your True Net Worth is
$125,000
We do not store your data. All calculations are performed instantly in your browser securely.
Your Assets
$445,500Liquid Cash
Investments & Retirement
Real Assets Valuation
Your Liabilities
$320,500Outstanding Debts
What about my income?
Your income (salary, side hustles) does not directly factor into your net worth. Only the portion of your income that you retain as an asset (cash, investments, home principal) will increase your net worth.
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Why Track Your Net Worth?
Your Net Worth is the ultimate scorecard of your financial life. While society often focuses on *income* (e.g., "she makes a six-figure salary"), income is simply cash flow. If you make $200,000 a year but spend $200,000 a year, your net worth will be zero. Tracking your net worth ensures you are actually retaining the value of your hard work rather than just passing the money straight through to retail stores and banks.
Positive Net Worth
If you have a positive net worth, it means your assets are more valuable than your debts. You are on the right track toward financial independence.
Negative Net Worth
A negative net worth means you owe more money than you own. This is very common for young professionals who recently took out large student loans to complete their education.
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Frequently Asked Questions
How is net worth calculated?
Net worth is calculated using a very simple mathematical formula: "Total Assets" minus "Total Liabilities." In other words, take everything you own that has value (cash, house, cars, stocks) and minus everything you owe (mortgages, credit card debt, student loans).
Does my salary count towards my net worth?
No. Your salary or annual income is not an asset—it is cash flow. Income only increases your net worth if you choose to save or invest it. For example, if you make $500k a year but spend $500k out partying, your net worth will not grow.
Should I include my car in my net worth?
Yes, because a vehicle is a liquidated asset that can be sold for cash. However, be sure you use the true "trade-in" value of the car as the asset, and be sure you place the remaining balance of the car loan in the liabilities column.
What is the difference between liquid and illiquid assets?
Liquid assets can be immediately converted into cash at their stated value with little to no friction (e.g., Checking accounts, savings accounts, and regular stocks). Illiquid assets take time, effort, and high transaction costs to convert to cash (e.g., Real Estate, fine art, or privately held businesses).