Net Worth Calculator
Calculate your financial net worth by summing your assets and subtracting liabilities.
Assets
Liabilities
What's Your Financial Scoreboard?
Your income is what you earn, but your net worth is what you *own*. It's the single best number for measuring your financial health and progress. The formula is simple: what you own (assets) minus what you owe (liabilities). Tracking this number over time is a powerful way to see if your financial decisions are moving you forward, helping you set goals and stay motivated on your path to financial independence.
How to Calculate Your Net Worth
The process is a simple inventory of your finances:
- List Everything You Own (Assets): This includes cash in the bank, the value of your investments (stocks, mutual funds), retirement accounts (401k, IRA), and the current market value of your home and vehicles.
- List Everything You Owe (Liabilities): This includes the outstanding balance on your mortgage, car loans, student loans, and any credit card debt.
This calculator automatically does the math (Assets - Liabilities) to show your current net worth.
Frequently Asked Questions (FAQ)
Q: Can my net worth be negative?
A: Yes, absolutely. If you have significant debt (like student loans) and few assets, it's very common to have a negative net worth early in your career. The goal is to track its growth into positive territory over time.
Q: How often should I calculate my net worth?
A: Calculating it once or twice a year is a good cadence. Doing it too often can be discouraging due to normal market fluctuations. The goal is to track the long-term trend, not short-term noise.