Net Worth Calculator
Your Complete Financial Picture
Why Track Net Worth?
Net worth is the single most important number in personal finance. Unlike income (which measures flow), net worth measures your total financial position — it's the scoreboard of your financial decisions. A high income with high spending can result in a lower net worth than a moderate income with disciplined saving.
Growing Your Net Worth
- Increase assets — Save and invest consistently, max out tax-advantaged accounts, build equity in property
- Reduce liabilities — Pay off high-interest debt first, avoid new consumer debt, refinance to lower rates
- Appreciate existing assets — Invest for growth (stocks over bonds for long-term), maintain property value, reinvest dividends
- Avoid depreciating assets — Cars, electronics, and luxury items lose value. Minimize spending on things that depreciate rapidly
Frequently Asked Questions
What is net worth?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). Assets include cash, investments, property, and vehicles. Liabilities include mortgages, student loans, credit card debt, and car loans. A positive net worth means you own more than you owe.
What is a good net worth by age?
A common benchmark: your net worth should be roughly your age × annual income ÷ 10 (the 'Millionaire Next Door' formula). By 30: ~0.5× income. By 40: ~2× income. By 50: ~4× income. By 60: ~7× income. These are guidelines — starting late is still better than not starting.
Should I include my home in net worth?
Yes, your home equity (market value minus mortgage balance) is part of your net worth. However, some financial planners calculate 'investable net worth' separately, excluding your primary residence since you can't easily spend it. Both views are useful.
How often should I calculate my net worth?
Monthly is ideal, quarterly at minimum. Track it consistently over time — the trend matters more than any single number. Many people update on the 1st of each month. Use a simple spreadsheet or app to track the trajectory.