What is net worth?

Net worth is the total value of everything you own minus everything you owe. Assets include cash, investments, property and vehicles. Liabilities include loans, credit cards and mortgages.

Section 01

How to calculate it

List every asset at its current value. List every debt at its current balance.

Section 02

Why it matters

  • It shows your overall financial position.
  • It helps you decide whether to pay off debt or invest.
  • It grows when you save, invest or pay down debt.
Section 03

FAQ

Should I include my home?

Yes, at a conservative market value, minus the mortgage balance. A paid-off home is an asset; the mortgage is a liability.

How often should I track it?

Key takeaway

Monthly or quarterly is enough. Daily changes are noise; the trend over months is what matters.

Next step · Free

Get help with your debt

See the payoff options that fit your balances, from a vetted debt specialist.

Get debt help options

Takes about 2 minutes · No obligation

What to include in the net worth calculator

Net worth equals total assets minus total liabilities. Assets may include cash, investment and brokerage balances, retirement accounts, real estate, vehicles, and other property with measurable resale value. Liabilities may include mortgages, student loans, credit cards, auto loans, taxes due, and other debt. Use balances from the same date so the calculation represents a consistent snapshot rather than a mix of different periods.

Avoid counting income as an asset unless the money has already been received and remains in an account. For a home, use a reasonable current value and list the mortgage separately; home equity is the difference, not an additional asset to count again. An inheritance should generally be included only after ownership and value are established. Updating net worth periodically can show changes, but short-term market movements do not necessarily reflect financial progress or failure.

Common questions

People also search for

Part of the Money & Debt (incl. Student Loans) cluster.

Get help with your debt

Start