How to calculate net worth
Net worth = Total assets − Total liabilities
Worked example. Your net worth: $183,000.
Example inputs — Cash & savings: $15,000; Investments & retirement: $60,000; Home value: $350,000; Mortgage balance: $250,000; Other assets (cars, etc.): $20,000; Other debts (loans, cards): $12,000. Starting values are illustrative.
From George Guju, founder of Calculyn · Educational calculator guidance, not professional advice.
How it works
Net worth is everything you own minus everything you owe. Tracking it over time is one of the clearest measures of financial progress.
Using the net worth estimate
Net worth is a snapshot of assets less liabilities. It brings property, investments and cash into one view while subtracting outstanding debts. That makes it useful for tracking long-term financial progress, but it is different from monthly income or cash available for bills. A household can have substantial net worth tied up in a home and still need an emergency reserve or a more sustainable spending plan.
Step-by-step inputs
- Cash & savings. Add accessible cash and savings balances at a consistent snapshot date. Do not include borrowed funds without also including the matching liability. Starting example: $15,000 .
- Investments & retirement. Use current investment and retirement account values, not expected future balances. This tool does not subtract future withdrawal taxes. Starting example: $60,000 .
- Home value. Use a reasonable present property value. Enter the full asset value here because the mortgage is deducted separately. Starting example: $350,000 .
- Mortgage balance. Enter outstanding mortgage principal, not the original loan or the sum of future installments. Starting example: $250,000 .
- Other assets (cars, etc.) (Advanced options). Add other assets at realistic current values. A vehicle's original purchase price may be much higher than its resale value. Starting example: $20,000 .
- Other debts (loans, cards) (Advanced options). Include remaining balances of other loans and cards. Do not enter monthly minimum payments in place of the amount owed. Starting example: $12,000 .
Worked example with the starting values
Using the starting inputs, the estimate is Your net worth: $183,000 .
Total assets sum cash, investments, home value and other assets. Total liabilities sum the mortgage and other debt. Their difference is net worth. The asset chart shows composition of assets only; it does not mean each slice is available cash or subtract debt from the slices.
- Total assets
- $445,000
- Total liabilities
- $262,000
Compare home value scenarios
All other inputs stay at their starting values. These are modeled comparisons, not quotes, predictions or individual recommendations.
| Home value | Your net worth |
|---|---|
| $300,000 | $133,000 |
| $350,000 | $183,000 |
| $400,000 | $233,000 |
Make a useful comparison
Track the same categories at regular intervals. Consistent valuation is more useful than changing estimates to make a single snapshot look better. Changes in asset prices and changes from saving or debt repayment can both affect the total.
Separate liquidity from net worth. Money needed soon should be assessed using cash and accessible reserves, not the entire value of property or restricted retirement accounts. Selling an asset can involve time, taxes and transaction costs.
Use the snapshot to choose a next planning tool. A large debt balance suggests a payoff comparison; a low cash reserve suggests an emergency-fund plan. The net-worth total describes a position, not a complete prescription for how to allocate new income.
Common mistakes to avoid
- Do not enter home equity as the home asset and also subtract the mortgage. That deducts the loan twice.
- Do not count an investment account inside cash and again inside investments. Transfers between your own accounts do not create new wealth.
- Future pension income, taxes on sale and borrowing access are not fully valued here. A negative result means modeled liabilities exceed assets, not that the calculator has assessed your creditworthiness.
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Assumptions & limitations
- Gross (pre-tax) amounts unless stated.
- Uses the hours and weeks you enter.
Formula and assumptions reviewed October 2026 by the Calculyn team. How we build our calculators
Frequently asked questions
What is the formula for calculating net worth?
Net worth = total current assets minus total outstanding liabilities. This tool adds cash, investments, home and other assets, then subtracts the mortgage and other debts; list the whole home value and mortgage separately.
How often should I calculate my net worth?
A monthly, quarterly or annual check can be useful if you value assets consistently. Record the date and compare the trend; daily market movements need not trigger changes to a long-term plan.
Should I include future income or potential assets?
No. Include assets you currently own and debts you currently owe. Future salary, an unreceived inheritance and hoped-for asset appreciation are not current assets.
How can I improve my net worth?
Saving adds assets, reducing debt lowers liabilities, and investment values can rise or fall. Track what changes the total and avoid counting a transfer between your own accounts as new wealth.
Is a negative net worth bad?
It means current debts exceed current assets. It is not a moral judgment or a complete financial diagnosis. Review borrowing costs, repayment capacity and whether the trend is improving rather than comparing only the headline.
Should I use purchase price or current market value for assets?
Use a reasonable current market value, not original purchase price. Be consistent about valuations and note that selling costs and taxes can reduce what you actually receive.
Do I include retirement accounts even if they're tax-deferred?
Yes, if you own the account, include its current balance in investments and retirement. This tool does not subtract future withdrawal tax or early-access penalties; a liquid or after-tax net-worth view would need separate adjustments.
Do I include joint assets and debts?
For household net worth, include the full household amounts once. For an individual view, use a consistent ownership share and account for your debt liability. Do not mix individual assets with full household debts or double-count shared accounts.
Should the home field contain equity or full value?
Full current value. The mortgage balance is subtracted separately, so entering equity would double-count the debt.
Is net worth money I can spend today?
No. Property and restricted accounts may not be readily spendable. Assess liquid cash and short-term obligations separately.