How this calculator works
Enter your current assets and liabilities across common categories. The calculator subtracts total liabilities from total assets to show your net worth and the ratio of debt to assets.
Assets include liquid accounts (checking, savings), invested assets (brokerage, retirement accounts), and physical assets (home, vehicles, other property). Liabilities include all outstanding debt balances — mortgage, HELOC, auto loans, student loans, credit cards, and other obligations.
Net worth is a snapshot in time. Update it regularly — quarterly or annually — to track progress as you pay down debt, build savings, and see property values change.
What affects the result
- Home value is often the largest single asset for homeowners. Use a current estimate from a real estate site or recent appraisal. Home value alone does not determine wealth — the mortgage balance reduces the net equity you actually hold.
- Retirement accounts are pre-tax values (for traditional 401k and IRA). Actual after-tax value at retirement will be lower, depending on your tax rate when you withdraw.
- Vehicle depreciation — vehicles lose value over time. A car worth $25,000 today may be worth $18,000 in three years. Use the current market value, not what you paid.
- Mortgage balance vs. home equity — the equity in your home is home value minus mortgage balance. A $400,000 home with a $300,000 mortgage contributes $100,000 to net worth, not $400,000.
- Credit card debt entered here should be the outstanding balance, not the credit limit.
Real-world examples
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Early career. Checking $3,000, savings $8,000, retirement $12,000, vehicle $18,000, student loans $35,000, credit card $2,000. Net worth: approximately $4,000. Negative net worth early in a career is common — the student loan balance often exceeds early assets.
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Mid-career homeowner. Checking $6,000, savings $20,000, investments $55,000, retirement $120,000, home value $380,000, vehicle $22,000 — mortgage $290,000, auto loan $14,000, student loans $8,000. Net worth: approximately $291,000.
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Near retirement. Retirement accounts $850,000, savings $80,000, home value $420,000 — mortgage $90,000. Net worth: approximately $1,260,000.
Common mistakes
- Counting home value without the mortgage. The asset is home value; the mortgage is a liability. Both must be entered for an accurate net worth figure.
- Using purchase price instead of current value. Market values for homes and vehicles change. Use today's estimated value, not what you paid.
- Forgetting retirement accounts. 401(k), IRA, Roth IRA, and pension values are real assets even if they can't be touched without penalties for years.
- Including only one spouse's assets/debts. Household net worth should include both partners' assets and liabilities for an accurate picture.
- Confusing income with net worth. A high income that is spent quickly does not build net worth. Savings rate — not salary — is the primary driver of net worth growth.
When to use this calculator
Use net worth as a baseline metric when starting a financial plan, setting savings goals, evaluating major financial decisions (home purchase, career change), and tracking progress annually. A growing net worth trend over years indicates your savings and debt payoff are working even when individual months feel slow.
To understand whether your retirement savings are on track, use the retirement projection calculator. To model how much home equity you're building, use the loan payment calculator for amortization context.
Frequently asked questions
What is a good net worth by age? Common benchmarks: by 30, one year of salary; by 40, three times salary; by 50, six times salary; by 60, eight times salary. These are rough targets, not requirements. Your goals, lifestyle, and income history all shape the right number for your situation.
Should I include my car as an asset? Yes — enter its current market value as an asset. But also enter any outstanding auto loan balance as a liability. The net contribution to your net worth is market value minus loan balance.
Are retirement accounts included in net worth? Yes. Include 401(k), IRA, Roth IRA, and pension cash values at current account balances. Traditional (pre-tax) retirement accounts will be partially offset by taxes owed at withdrawal — the calculator shows gross values, not after-tax values.
Does net worth include my home? Yes, if you own a home. Enter estimated current market value as an asset and the remaining mortgage balance as a liability. The difference is your home equity, which contributes to net worth.
How often should I calculate net worth? Quarterly or annually is typical for most people. Annual tracking around the same date each year smooths out seasonal cash-flow variations and gives a cleaner year-over-year comparison.
Related calculators
Model how retirement savings grow with the retirement projection calculator. Analyze your debt with the debt-to-income calculator. See how extra mortgage payments build equity faster with the extra mortgage payment calculator. Plan savings growth with the compound interest calculator.
FAQ
What is a good net worth by age?
Common benchmarks: by 30, one year of salary; by 40, three times salary; by 50, six times salary; by 60, eight times salary. These are rough targets shaped by your income, lifestyle, and goals — not universal requirements.
Should I include my car as an asset?
Yes — enter the current market value as an asset. Also enter any auto loan balance as a liability. The net contribution to your net worth is market value minus loan balance.
Are retirement accounts included?
Yes. Enter your current 401(k), IRA, Roth IRA, and pension cash values. Traditional (pre-tax) accounts will be partially offset by taxes owed at withdrawal — the calculator shows gross values, not after-tax values.
Does net worth include my home?
Yes. Enter estimated current market value as an asset and the remaining mortgage balance as a liability. The difference is your home equity, which is what actually contributes to net worth.
How often should I calculate net worth?
Quarterly or annually is typical. Annual tracking around the same date each year smooths seasonal cash-flow variation and gives a cleaner year-over-year comparison.
What if my net worth is negative?
Negative net worth is common early in adult life — especially with student loans — and is a starting point, not a permanent condition. Focus on paying down high-rate debt and building savings. Net worth typically turns positive and grows as loans are repaid and assets accumulate.
Should I enter home value at purchase price or current market value?
Use current estimated market value, not what you paid. Real estate markets change. Sites like Zillow or Redfin provide estimates, or you can use a recent comparable sale in your neighborhood. Accurate inputs give a more useful net worth figure.
How does this differ from a balance sheet?
Net worth and a personal balance sheet are the same concept. Assets minus liabilities equals net worth (equity). A formal balance sheet is more detailed, but the underlying calculation is identical.