How to Calculate Your Net Worth (And Why You Should Do It Today)

Your net worth is the single most important number in your financial life. It is the literal "bottom line" of your personal finances.

The Simple Formula

Net worth = What You Own (Assets) minus What You Owe (Liabilities).

What Counts as an Asset?

• Cash in bank accounts.
• Retirement account balances (401k, IRA).
• Home value (estimated market price).
• Car value (what you could sell it for today).

What Counts as a Liability?

• Mortgage balance.
• Student loan balance.
• Credit card debt.
• Car loan balance.

Why It's Better Than Income

Income only shows how much you earn, not how much you keep. A person earning $100k with $200k in debt has a lower net worth than someone earning $40k with $10k in savings and no debt.

Find your number in 2 minutes with our Net Worth Calculator.