Personal Net Worth Calculator
Calculate your total net worth by assessing your assets and liabilities
| Category | Amount | Percentage |
|---|---|---|
| NET WORTH | - | 100% |
1. Introduction
A Personal Net Worth Calculator is a powerful financial tool that helps individuals assess their overall financial position by calculating the difference between what they own (assets) and what they owe (liabilities). This snapshot of your financial health is crucial for:
Tracking progress toward financial goals
Making informed investment decisions
Preparing for major life events (retirement, home purchase)
Identifying areas for financial improvement
2. How to Calculate Net Worth
The Basic Formula:
Net Worth = Total Assets - Total Liabilities
Step-by-Step Calculation:
List All Assets (What You Own)
Liquid assets (cash, checking/savings accounts)
Investment accounts (stocks, bonds, retirement funds)
Real property (home, vehicles, other real estate)
Personal property (valuables, collectibles)
Business interests
List All Liabilities (What You Owe)
Mortgage balances
Auto loans
Student loans
Credit card debt
Personal loans
Other debts
Subtract Liabilities from Assets
3. Detailed Asset & Liability Breakdown
A. Assets to Include
| Asset Category | Examples | Notes |
|---|---|---|
| Cash & Cash Equivalents | Checking/savings accounts, CDs, money market funds | Most liquid assets |
| Investment Accounts | Brokerage accounts, 401(k), IRA, pension plans | Use current market values |
| Real Estate | Primary home, rental properties, land | Use conservative market estimates |
| Vehicles | Cars, boats, RVs | Use current resale value (KBB/NADA) |
| Personal Property | Jewelry, art, collectibles | Only include valuable items |
| Business Interests | Ownership stakes, side businesses | Harder to value accurately |
B. Liabilities to Include
| Liability Category | Examples | Notes |
|---|---|---|
| Mortgages | Primary residence, investment properties | Use remaining principal balance |
| Auto Loans | Car loans, boat loans | Include remaining balance |
| Student Loans | Federal, private education loans | Both current and deferred |
| Credit Card Debt | All revolving credit balances | Use current statement balances |
| Personal Loans | Bank loans, family loans | Include all outstanding |
| Other Debts | Medical bills, back taxes, liens | Don't ignore these |
4. Sample Net Worth Calculation
Example: John & Sarah (Age 35)
Assets:
Primary home: $450,000
Retirement accounts: $180,000
Brokerage account: $45,000
Emergency fund: $25,000
Cars: $28,000
Personal property: $15,000
Total Assets: $743,000
Liabilities:
Mortgage balance: $320,000
Student loans: $28,000
Car loan: $12,000
Credit cards: $4,000
Total Liabilities: $364,000
Net Worth:
$743,000 (Assets) - $364,000 (Liabilities) = $379,000
5. Tracking Over Time
A true financial picture emerges when you track net worth regularly (quarterly or annually). Consider:
Creating a simple spreadsheet
Using financial apps (Mint, Personal Capital)
Setting milestones (e.g., "$500K by age 40")
6. Advanced Considerations
A. What's Not Included
Future income potential
Social Security benefits
Human capital (education, skills)
B. Special Cases
Business owners: Separate personal/business finances
Married couples: Decide whether to combine or track separately
Negative net worth: Common for young professionals (focus on debt reduction)
7. Using Your Net Worth Calculation
Positive Net Worth Strategies:
Optimize investment allocations
Consider debt prepayment (high-interest first)
Plan for major purchases
Negative Net Worth Strategies:
Create a debt payoff plan
Build emergency savings
Increase income streams