How to calculate net worth
Net worth is a snapshot of assets minus liabilities on one date. Use balances and reasonable values from the same date so the comparison stays consistent.
Total assets = cash + investments + home and other assets
Total liabilities = mortgage balance + other debt
Net worth = total assets − total liabilities
Debt-to-assets ratio = total liabilities ÷ total assets
Total liabilities = mortgage balance + other debt
Net worth = total assets − total liabilities
Debt-to-assets ratio = total liabilities ÷ total assets
What belongs in the calculation?
Assets can include cash, investment and retirement accounts, and property you can value reasonably. Liabilities can include mortgages, credit cards, student loans, auto loans, and other unpaid balances. Taxes, selling costs, account restrictions, and uncertain valuations are not verified by this calculator.
Net worth is not cash flow
A positive or rising net worth does not show whether monthly income covers spending or whether assets are easy to sell. Track cash flow, emergency savings, and debt payments separately.