Net Worth Calculator

What is a Net Worth Calculator?

A Net Worth Calculator is a financial health tool that provides a snapshot of your overall financial position. It works by a simple formula: Assets - Liabilities = Net Worth. You list everything you own of value (assets) and subtract everything you owe (liabilities). The resulting figure is your net worth, a key indicator of your financial health. Tracking it over time is a great way to measure your progress toward your financial goals.

How to Use the Net Worth Calculator

To calculate your net worth, you need to sum up your assets and liabilities:

1. List Your Assets: Enter the value of your assets, such as cash, savings accounts, investments (stocks, mutual funds), retirement accounts (401k, IRA), and the market value of your home and vehicles.
2. List Your Liabilities: Enter the outstanding balance of all your debts, including mortgages, auto loans, student loans, and credit card balances.

The calculator will automatically subtract your total liabilities from your total assets to display your net worth.

Why Use a Net Worth Calculator?

Regularly calculating your net worth is a fundamental personal finance habit:

• Provides Financial Clarity: It gives you a single, clear number that represents your financial progress.
• Motivates Good Habits: Watching your net worth grow can motivate you to save more, invest wisely, and pay down debt.
• Goal Setting: It helps you set and track long-term financial goals, such as reaching a certain net worth by a specific age.