How to Calculate Your Net Worth
Net worth is the single best snapshot of your financial health. It is not about income — someone earning $200,000 with $300,000 in debt has a lower net worth than someone earning $50,000 with $100,000 saved and no debt.
This guide shows you how to calculate your net worth, what to include (and what to leave out), how yours compares to median figures by age, and the three levers that move the needle fastest.
✨Key takeaways
- Net Worth = Total Assets − Total Liabilities.
- Assets: savings, investments, retirement accounts, home equity, vehicle value.
- Liabilities: mortgage balance, student loans, credit card debt, auto loans, personal loans.
- A negative net worth is normal in your 20s. The goal is consistent upward trend over time.
The formula and a worked example
Net Worth = Assets − Liabilities. That is it.
Example: Checking account $3,000 + Savings $15,000 + 401(k) $45,000 + Car value $12,000 + Home value $280,000 = $355,000 in assets.
Mortgage $220,000 + Student loans $18,000 + Car loan $8,000 + Credit cards $2,000 = $248,000 in liabilities.
Net worth = $355,000 − $248,000 = $107,000.
What to include (and exclude)
Include: bank accounts, investment and retirement accounts, real estate (current market value), vehicles (current resale value, not what you paid), and any other assets you could sell.
Include as liabilities: all debts — mortgage, student loans, auto loans, credit cards, personal loans, and any money you owe.
Exclude: personal belongings (furniture, clothing, electronics) unless they have significant resale value. The effort of tracking them outweighs the accuracy they add.
Benchmarks by age (US median)
Under 35: ~$39,000. 35–44: ~$135,000. 45–54: ~$247,000. 55–64: ~$364,000. 65–74: ~$409,000. (Federal Reserve Survey of Consumer Finances, 2022 data.)
These are medians, not averages. Averages are much higher because a small number of very wealthy households pull them up. Compare yourself to the median for a more realistic picture.
If you are below the median, focus on the three growth levers below.
The three levers that grow net worth
Lever 1: Increase savings rate. Even a 2% increase in your savings rate compounds dramatically over decades.
Lever 2: Reduce liabilities. Paying off a $10,000 credit card balance increases your net worth by $10,000 immediately, plus you stop paying 20%+ interest.
Lever 3: Grow asset value. Investing in low-cost index funds, building home equity, and contributing to retirement accounts grow the asset side.
Track your net worth quarterly. Use the Retirement Savings Calculator to project where your net worth will be in 10, 20, or 30 years.
Try the calculators referenced in this guide
Put the maths into practice — every calculator is free and runs entirely in your browser.
Frequently Asked Questions
Should I include my home in my net worth?
Yes, but use the current market value (a conservative estimate), not the purchase price. Subtract the remaining mortgage to get your home equity, which is the portion that counts as a net asset.
Is a negative net worth bad?
Not necessarily. Many people in their 20s have negative net worth due to student loans. It is a starting point. What matters is the trend — is your net worth increasing over time?
How often should I calculate my net worth?
Quarterly is ideal. Monthly can be noisy due to market fluctuations. Annually is fine if you want a simpler habit. The key is consistency so you can track the trend.
The Precision Calculator Editorial Team
The editorial team at Get Precision Calculator writes practical, formula-driven guides that explain the maths behind every calculator on this site. All content is reviewed for accuracy before publishing.
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