How to Calculate Your Net Worth

How to Calculate Your Net Worth

Most people focus on income — how much they make. But the number that actually tells you where you stand financially is your net worth. It's the one number that captures everything: what you own, what you owe, and what you'd actually have if you settled up today.

What Is Net Worth?

Net worth is simple:

Net Worth = Total Assets − Total Liabilities

  • Assets — everything you own that has value
  • Liabilities — everything you owe

If your assets are worth more than your debts, your net worth is positive. If your debts exceed your assets, it's negative — which is common early in life and nothing to panic about.

What Counts as an Asset?

Asset Type Examples
Cash & savingsChecking, savings, HYSA, money market
InvestmentsStocks, bonds, ETFs, mutual funds
Retirement accounts401(k), IRA, Roth IRA
Real estateHome value, rental properties
VehiclesCar, motorcycle, boat (current market value)
Other valuablesJewelry, art, business ownership

What Counts as a Liability?

Liability Type Examples
MortgageRemaining balance on home loan
Car loansOutstanding auto loan balance
Student loansFederal and private student debt
Credit card debtTotal balances across all cards
Personal loansAny outstanding personal loan balances
Other debtsMedical debt, back taxes, etc.

A Simple Net Worth Example

Assets Value
Checking & savings$12,000
401(k)$45,000
Car (market value)$18,000
Total Assets$75,000
Liabilities Balance
Student loans$28,000
Car loan$11,000
Credit card$3,500
Total Liabilities$42,500

Net Worth = $75,000 − $42,500 = $32,500

What Is a Good Net Worth?

There's no universal "good" number — it depends heavily on age, income, and location. A rough benchmark by age:

Age Median Net Worth (U.S.)
Under 35~$39,000
35–44~$135,000
45–54~$247,000
55–64~$364,000
65–74~$410,000

Don't compare yourself to averages — focus on whether your net worth is growing over time.

How to Grow Your Net Worth

There are only two levers: increase assets or decrease liabilities.

Increase assets by:

  • Saving and investing consistently
  • Contributing to your 401(k) and IRA
  • Building equity in your home
  • Growing your emergency fund

Decrease liabilities by:

  • Paying off high-interest debt aggressively
  • Avoiding new unnecessary debt
  • Refinancing to lower interest rates

Calculate Your Net Worth Now

Use our free net worth calculator to add up your assets and liabilities and see your exact number.

👉 Try the Net Worth Calculator →

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