How This Net Worth Calculator Works
Net worth = total assets − total liabilities. Assets are what you own: your home's current value, cash and savings, investments and retirement accounts, vehicles, and anything else you could sell. Liabilities are what you owe: mortgage, auto loans, student loans, credit card balances, and other debts. Use current values, not what you paid — a car's value is what it would sell for today, and a home's value is a realistic market estimate, not the purchase price.
Net worth = (home + cash + investments + vehicles + other assets) − (mortgage + auto + student + cards + other debts)Use current market values for assets and current balances for debts.
Worked example: assets of $250,000 (home $150,000, savings $25,000, investments $50,000, vehicle $20,000, other $5,000) and liabilities of $180,000 (mortgage $120,000, auto loan $15,000, student loan $25,000, credit cards $10,000, other $10,000). Net worth = $250,000 − $180,000 = $70,000, with debts at 72.0% of assets.
Practical tips
Net worth moves slowly and markets wobble daily. Recompute it every January and watch the trend line — the direction matters more than any single number.
Most of many households' net worth sits in the home. It counts, but you cannot spend it without selling or borrowing against it, so keep an eye on the liquid part too.
Paying off a 22% credit card balance raises net worth by the same dollars as saving — and saves the interest on top. High-interest debt first.
Your salary is not an asset. Net worth is a snapshot of what you own and owe today, not what you will earn over your career.