How the Net Worth Calculator works
Net worth is a balance-sheet snapshot. Assets are resources you own; liabilities are amounts you owe. Tracking the same categories periodically can show whether saving, investing, debt repayment, and market changes are moving the total over time.
Method: Net worth = total assets − total liabilities.
Inputs to review
- Cash and savings: Use a realistic current value and test a conservative alternative.
- Investments and retirement accounts: Use a realistic current value and test a conservative alternative.
- Home and other property value: Use a realistic current value and test a conservative alternative.
- Other assets: Use a realistic current value and test a conservative alternative.
- Mortgage balance: Use a realistic current value and test a conservative alternative.
- Student and auto loans: Use a realistic current value and test a conservative alternative.
- Credit card and other debt: Use a realistic current value and test a conservative alternative.
How to interpret the result
Use reasonable current values rather than purchase prices. A negative result is information, not a judgment; the trend and the composition of assets and debt are often more useful than one number.
Assumptions and limitations
Values may be uncertain and selling costs or taxes can reduce what an asset is worth to you. The tool does not distinguish liquid from illiquid assets.
Recalculate when rates, balances, income, goals, or time horizons change. A useful estimate is a range built from several plausible scenarios, not a single precise-looking number.