Net Worth Calculator: Calculate Your Net Worth

A Net Worth Calculator is an online tool which will tell you how much wealth you have in total. Whether this is for your household, retirement, debt or building wealth, knowing your net worth can help.

Many people within the United States use their net worth to see where they stand financially. This includes looking at different assets you have such as cash, savings, investments, retirement, property and vehicles, as well as looking at your debt including mortgages, car loans, credit cards, student loans and personal loans.

Our Net Worth Calculator will help you work out your Net Worth. Simply input your approximate value for assets and debt to calculate your Net Worth in USD. Subtract your total liabilities from your total assets.

If you have assets worth $350,000 and your liabilities total $150,000 then you have a Net Worth of $200,000.

Your Net Worth isn’t your income or how much money you currently have in the bank. It is simply the difference between your assets and debts. Regularly reviewing your Net Worth can help you to know where you stand financially, what you can improve and make more informed decisions on how to save, invest and borrow.

How to Use the Net Worth Calculator

Using the Net Worth Calculator is easy. Simply follow the below steps.

1. Cash & Savings

Add your cash and savings. This includes current accounts, savings accounts, CDs and anything else that can be considered cash.

2. Investments

Enter your current value of any investments. This includes stocks, bonds, mutual funds, ETFs and taxable investment accounts.

3. Retirement

Add any eligible retirement accounts. This can include 401(k)s, Traditional IRAs and Roth IRAs.

4. Property & Assets

Enter your approximate market value of your property. This can include your home, investment properties, vehicles and any other items of value.

5. Debts

Add your current mortgages, car loans, student loans, credit cards, personal loans and any other debts.

6. Calculate

Click ‘calculate’ to find out your total assets, liabilities and estimated Net Worth.

7. See Results

Use your results to understand where you stand financially. This can help you to improve your position.

Make sure that you are using the current balance for your accounts, reasonable market value for your property and current loan balances to get the most accurate result.

Net Worth Calculator Formula

The formula used to work out your Net Worth is:

Net Worth = Total Assets - Total Liabilities

Where:

Total Assets = The total current value of everything you own.

Total Liabilities = The total amount you owe lenders and creditors.

Net Worth = The difference between your assets and liabilities.

To calculate your total assets add together your cash, savings, investments, retirement, property, vehicles and any other assets.

To calculate your total liabilities add together your current mortgage, car loan, credit card, student loan, personal loan and any other debts.

If your assets are higher than your liabilities then your Net Worth will be positive. If your liabilities are higher than your assets your Net Worth will be negative.

Example Calculation

Imagine there is a household in the United States who want to calculate their Net Worth. They have a home, savings and retirement investments. They also have a mortgage and car loan to pay off.

The approximate financial details are:

Financial Items Amount

Cash & Savings $15,000

Investments $25,000

Retirement $60,000

Market Value of Home $300,000

Vehicle Value $20,000

Total Assets $420,000

Mortgage $220,000

Car Loan $10,000

Credit Cards $5,000

Total Liabilities $235,000

Using the Net Worth formula:

Net Worth = Total Assets - Total Liabilities

Net Worth = $420,000 − $235,000

Net Worth = $185,000

This means that this household has an approximate Net Worth of $185,000. Although it owes $235,000 due to their current debt. Their assets are worth more than their liabilities.

This is just a snapshot of their financial situation. They might still need to manage their income, outgoings and debt carefully.

Understanding your Results

Your Net Worth Calculator result will help you understand your position.

Positive Net Worth = You have more assets than liabilities. This means you generally have more assets than debt.

Negative Net Worth = You have more liabilities than assets. This can happen if you have large student loans, a large mortgage and low savings.

Zero Net Worth = You have equal assets and liabilities.

Total Assets = The total value of your financial and non-financial assets.

Total Liabilities = The total amount of your debts and liabilities.

Having a positive Net Worth doesn’t necessarily mean you have enough cash on hand. You may have a lot of your wealth tied up in your home or retirement accounts that have withdrawal limitations or tax applied.

Having a negative Net Worth doesn’t mean you are financially unsuccessful. Many young professionals, recent graduates and first time homeowners will have large debts whilst building up their assets.

The most useful thing to do is to keep track of your Net Worth over time.

Factors Impacting Your Net Worth

There are several factors that can impact your Net Worth.

Savings & Cash

Increasing your savings will increase your assets. Having emergency savings can help with unexpected costs without having to rely on credit cards or personal loans too much.

Investments

Your stocks, bonds, mutual funds and other investments can increase or decrease in value. This can impact your Net Worth.

Property

The market value of your home will impact your assets. Whilst your current mortgage will impact your liabilities. If the local property market increases or decreases, this will impact your Net Worth.

Debt

Credit cards, student loans, mortgages and car loans will decrease your Net Worth. Paying off your principle will generally decrease your liabilities. However, interest and other charges will impact your overall financial position.

Retirement

Contributing towards retirement accounts such as your 401(k) or IRA can increase your retirement assets. These can be impacted by investment returns and charges.

Large Purchases

Purchasing a vehicle, improving your home or any other items of value can impact your assets and liabilities. Some assets will depreciate over time.

Income, Expenditure & Savings

Whilst your income won’t impact your Net Worth directly, if you regularly save some of your income this can help build up your assets and reduce your debt.

Benefits & Uses

A Net Worth Calculator can help you achieve various financial goals.

Financial Awareness

Understand your overall financial position.

Setting Goals

Know what you want to achieve with your savings, investments and debt.

Debt Management

Know what liabilities you may need to pay more attention to.

Retirement Planning

Keep track of your progress towards your long term goals.

Investment Tracking

See how your investment and retirement balances are impacting your wealth.

Big Purchases

Know what impact buying a home, vehicle or expensive items may have.

Tracking Progress

Compare your Net Worth over a period of months/years to see how you are doing.

For example, if your Net Worth increases from $80,000 to $95,000 over a year you can look into why your Net Worth has increased. This could be because you are saving more, paying off your debt, increasing your investments or increasing property values.

Checking your Net Worth every 3-6 months can help keep you consistent with seeing how you are doing.

Accuracy, Assumptions & Limitations

A Net Worth Calculator will give you an approximate value. To ensure accuracy make sure you are using current values for your assets and current liabilities.

Ensure you are using current bank balances, investment statements, retirement balances and loan statements. Make sure you are using a reasonable market value for your property. When considering vehicles and personal items use realistic resale values.

Generally we assume that you have included all assets and liabilities. Ensure that all values are in the same currency. If you have any assets/debts in another currency, convert them consistently.

Some assets may be tricky to value. This can include owning a private business, collectables and certain investments. There may be tax, fees and penalties involved when selling assets or accessing your retirement funds.

Net Worth doesn’t take into consideration how liquid your money is, your income per month, your expenditure or your ability to pay upcoming payments. You may have a high Net Worth due to having a large amount of equity in your home, however you may not have much cash.

The Net Worth Calculator should be used as a general guide for your financial planning.

FAQs

What is Net Worth?

Net Worth is the difference between your total assets and total liabilities. It gives you a snapshot of where you are financially at a particular time.

What is the Net Worth formula?

Net Worth = Total Assets - Total Liabilities. Add up the current value of everything you own and subtract your current debts. This will give you an estimated Net Worth.

What should I include for assets?

Include your cash, current accounts, savings, investments, retirement, property, vehicles and any other items of value. Use the current estimated value.

Should I include my mortgage and student loans?

Yes. Include your current mortgage, student loans, car loans, credit cards, personal loans and any other debts. If you have included your home’s market value then you will need to subtract your current mortgage.

Is it bad to have a negative Net Worth?

A negative Net Worth means you have more liabilities than assets. This may mean you need to pay more attention to paying off your debts and saving. However, it isn’t necessarily a bad thing. Consider your age, income, financial commitments and long term goals.

How often should I calculate my Net Worth?

Many households will find it practical to calculate their Net Worth every 3-6 months. However you can calculate it once per year or if there has been a big change in your finances such as buying a home, paying off a loan or changing jobs.

What is a good Net Worth in the USA?

There is no one answer for what a good Net Worth is in the USA. It will depend on your age, income, location, number of people in your household, debt and retirement goals. It may be more useful to compare your progress over time.