Why use this calculator
Net worth is the single best snapshot of your financial health. Tracking it over time shows whether you are building wealth or falling behind. This calculator provides a clear picture of where you stand financially.
How to use it
Enter the current values of all your assets (what you own) and liabilities (what you owe). The calculator sums each category and computes your net worth along with key ratios.
The formula
Net Worth = Total Assets - Total Liabilities. Debt-to-Asset Ratio = Total Liabilities / Total Assets x 100.
Worked examples
$480K in assets, $300K in liabilities
Net worth of $180,000 with a 62.5% debt-to-asset ratio
$150K in assets, $50K in liabilities
Net worth of $100,000 with a healthy 33.3% debt-to-asset ratio
When people use it
- Tracking financial progress over months and years
- Preparing for a financial advisor meeting
- Setting wealth-building goals and milestones
- Understanding total financial position for major decisions
Tips
- Track your net worth monthly or quarterly to see trends
- Focus on reducing high-interest debt first for the fastest net worth improvement
- Do not include depreciating assets like electronics at purchase price
- A negative net worth is common early in life due to student loans - focus on the trend
Questions people ask
- What is a good net worth?
- A common benchmark is to have a net worth equal to your age times your annual pre-tax income divided by 10. For example, a 30-year-old earning $60K might target $180K.
- Should I include my home?
- Yes, but be realistic about its value. Your home is an asset, but it is illiquid. Liquid net worth (excluding home equity) is also useful to track.
- What about my car?
- Include vehicles at their current market value (not purchase price), and include any remaining car loan as a liability.