How the Net Worth Calculator works

Your net worth is the simplest “big picture” number in personal finance: it measures what you own minus what you owe. The formula is intentionally simple because its job is not to be fancy — it’s to be trackable. If you can re-run the same calculation consistently, you can see whether you’re moving forward, stalling, or sliding backward.

The calculator has two parts: assets and liabilities. Assets are anything that has value and could (at least in theory) be sold, transferred, or used to pay bills. Liabilities are obligations: balances you owe to a lender, a credit card company, the government, or anyone else. When you subtract liabilities from assets, you get net worth — the portion of your “stuff” that is truly yours.

• Total assets = cash + investments + retirement + home value + vehicles + other assets
• Total liabilities = mortgage + credit cards + student loans + auto loans + personal loans + other debts
• Net worth = total assets − total liabilities

That’s it. But because real money lives in the details, it helps to understand what belongs where. For example, your home is an asset, but the mortgage is a liability. Your car is an asset, but the auto loan is a liability. A retirement account is an asset, even though you typically won’t spend it today. The goal is a consistent snapshot — not perfection down to the last dollar.

In this calculator, assets are grouped into a few everyday buckets: cash & savings (checking, savings, money market), investments (brokerage accounts, ETFs, stocks), retirement (401(k), IRA, pensions you can reasonably estimate), home value, vehicles, and other assets (business equity, collectibles, valuables, crypto, or anything else you want to include).

A practical rule: include assets at a conservative estimate you’d feel comfortable defending. Net worth tracking is not an audition — it’s feedback. Overstating values can make the trend look better than reality, and understating values can make you feel behind. Choose a fair estimate, then focus on improving the curve.

Liabilities are simpler: if there’s a balance you must repay, it belongs here. Typical examples are mortgage balances, credit card balances, student loans, auto loans, personal loans, medical debt, tax obligations, and any other unpaid balances. If you want your snapshot to be “clean,” use the current balance you could look up right now on a statement or app.

This tool also shows a couple of helper metrics that make the snapshot more actionable:

• Total assets and Total liabilities (the two halves of the equation). These totals help you see whether progress is coming from asset growth, debt reduction, or both.
• Debt-to-asset ratio = liabilities ÷ assets. This shows how “leveraged” you are. A ratio of 0% means no debt. A ratio of 50% means your debts equal half your assets. (This is not universally “good” or “bad” — it’s context.)
• Owned vs owed bar = the percentage of assets that are not offset by debt. It’s a quick visual for screenshots and habit building.

Keep in mind: different life stages naturally have different net worth patterns. Many people start with negative net worth due to student loans. Homeowners often have large assets and large liabilities at the same time. Entrepreneurs might have “lumpy” net worth due to business equity. The point is not comparing to a stranger — it’s comparing you today to you last quarter.

Imagine you have $12,500 in cash, $42,000 in investments, $88,000 in retirement, a $350,000 home, a $18,000 car, and $10,000 in other assets. Your total assets are:

• $12,500 + $42,000 + $88,000 + $350,000 + $18,000 + $10,000 = $520,500

Now say you owe $240,000 on your mortgage, $3,200 on credit cards, $15,000 in student loans, $9,000 auto loan, and $2,500 personal loan. Your total liabilities are:

• $240,000 + $3,200 + $15,000 + $9,000 + $2,500 = $269,700

Net worth is assets minus liabilities: $520,500 − $269,700 = $250,800. That’s your net worth snapshot.

• Do a “first snapshot” today. Save it. That becomes your baseline.
• Repeat monthly (or quarterly). Focus on the trend line, not daily noise.
• Pick one lever: add $X/month to investing, or pay $X/month extra toward a debt.
• Celebrate boring wins: paying down debt and automated investing are “quiet” but powerful.

If you’re building a business, you can also use net worth as a clarity tool. It helps answer: “If my income stopped for a while, what’s my buffer?” and “How dependent am I on debt?” A calm, consistent net worth routine is one of the most underrated confidence builders in money.

Frequently Asked Questions

• Is net worth the same as how much money I have?

  Not exactly. “Money you have” usually means liquid cash. Net worth includes illiquid assets like a home, investments, and retirement accounts — and subtracts debts you owe.

• Should I include my home value and mortgage?

  Yes, if you want a complete snapshot. Your home is an asset, and your mortgage is a liability. Together they show your home equity (value − mortgage).

• What if my net worth is negative?

  That’s common early in adulthood (especially with student loans). Negative net worth is not a verdict — it’s just a starting point. The win is making the number trend upward over time.

• How often should I calculate net worth?

  Monthly is great for motivation, quarterly is great for sanity. If your investments swing a lot, quarterly can help you avoid reacting to noise.

• Does this calculator store my financial data?

  No. Your inputs stay in your browser. If you choose “Save Snapshot,” it’s stored locally on your device (via your browser’s localStorage), not on a server.

• Should I include credit limits or only balances?

  Use balances (what you owe). Credit limits are not debt; they’re potential debt.