Net Worth Calculator 

A Quick Guide to Calculating Your Net Worth

The majority of people have never really taken the time to add everything up. Not at all. They do not have a single figure that captures the whole picture, but they usually have a general idea of things like their mortgage balance, what is in the bank, and perhaps an investment account they occasionally check.

Your net worth is that figure, and it is more valuable than any specific amount you might monitor.

The formula is as straightforward as it gets when it comes to finance:

$$\text{Net Worth} = \text{Total Assets} – \text{Total Liabilities}$$

Everything you own that has monetary value is considered an asset: your house, investments, savings, retirement funds, cars, or any other property.

All of your debts, including your mortgage, auto loan, credit card debt, and student loans, are considered liabilities.

The difference between the two is what determines where you truly stand financially.

Enter the current value for each item. Use the current market value for assets rather than the amount you originally paid. Your automobile is probably worth less now, while your house might be worth more. For debts, use the outstanding balance rather than the original loan amount.

$$\text{Debt-to-Asset Ratio} = \frac{\text{Total Liabilities}}{\text{Total Assets}} \times 100$$

This ratio provides information that the net worth figure alone does not. For example, two individuals may both have a net worth of $200,000, but one may have $800,000 in assets and $600,000 in debt, while the other may have $250,000 in assets and only $50,000 in liabilities.

Same net worth, completely different levels of financial risk.

In general, a ratio below 50% is considered healthy. If the percentage exceeds 80%, even a single difficult month — such as losing a job or facing unexpected medical expenses — could quickly become a serious financial problem.