How to use the Net Worth Calculator
- 1 Enter your cash and savings, investments and retirement accounts.
- 2 Enter the market value of your home, vehicles and other assets.
- 3 Enter what you owe on each debt.
- 4 Read your net worth and ratios.
Worked example
A household with $595,000 of assets, including a $400,000 home and $120,000 in retirement accounts, and $320,000 of debts, including a $280,000 mortgage. Net worth is $275,000. Debts equal about 54% of assets, and liquid assets total $55,000.
Features
Assets and liabilities
A simple balance sheet for your household.
Debt-to-asset ratio
How much of what you own is financed by debt.
Liquid assets
Cash and investments you could reach quickly.
When to use it
Yearly check-up
Track your net worth once or twice a year.
Paying off debt
See your net worth rise as balances fall.
Couples
Combine finances to see the whole picture.
Loan applications
Prepare figures lenders ask about.
Frequently asked questions
What is net worth?
Everything you own minus everything you owe.
What is a good net worth by age?
The Federal Reserve's Survey of Consumer Finances shows median net worth rises with age, from tens of thousands in the 30s to over $250,000 for people in their 60s, but personal goals matter more.
Should I include my home?
Yes, at a realistic market value, with the mortgage as a debt. Some people also track net worth without the home.
Should I include my car?
Yes, at its resale value, not what you paid.
Can net worth be negative?
Yes, often early in a career with student loans. It turns positive as debts are paid off and savings grow.
How often should I update it?
Every few months or once a year is enough.
What raises net worth fastest?
Paying off high-interest debt, saving regularly and investing for growth.
Should retirement accounts count fully?
Most people count them at full value. Some subtract an estimate of future taxes on traditional 401(k) and IRA balances for a more accurate figure.
What about cash value life insurance?
Count the cash surrender value, not the death benefit.
Do I include personal belongings?
Only items with real resale value, such as jewelry or collectibles. Furniture and electronics usually add little.
How can couples track net worth?
Combine all assets and debts in one list, even if accounts are held separately.
Why does net worth fall some years?
Market drops, falling home values, new loans or large purchases can lower it, even while you are saving.
Is a high net worth the same as being wealthy?
Not exactly. Someone with a valuable home but little cash may have high net worth and still struggle with monthly bills, so liquid savings matter too.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated