Net Worth Calculator: Total Assets Minus Total Liabilities
A net worth calculator provides a financial snapshot by totaling what you own and subtracting what you owe. Tracking the same categories consistently over time can show progress even when individual asset prices fluctuate.
Quick answer
Net worth equals total assets minus total liabilities. A negative result is not a judgment; it is a starting point for measuring debt reduction, saving, and asset growth.
At a glance
- What it calculates
- Calculate household net worth by adding assets and subtracting liabilities.
- Who it is for
- US households tracking a personal balance sheet each quarter or year.
- Coverage
- United States (federal rules; state and local rules vary)
- Data and assumptions
- Current market values you enter for assets and payoff balances for debts; no tax on unrealised gains and no illiquidity discounts.
- Cost
- Free, no signup, calculations run in your browser
- Last reviewed
- 2026-07-09
Calculator
How to use this calculator
- List assets using current estimated values.
- List liabilities using current payoff balances.
- Avoid double counting joint accounts or property.
- Review the snapshot and repeat on a consistent schedule.
Explanation
What it is
A net worth calculator provides a financial snapshot by totaling what you own and subtracting what you owe. Tracking the same categories consistently over time can show progress even when individual asset prices fluctuate.
How it works
The calculator adds the current values entered for assets and subtracts the current payoff balances entered for liabilities.
When to use it
Use it once a quarter or once a year, entering the same categories each time so the trend line means something.
Limitations
- Net worth is a point-in-time snapshot and says nothing about cash flow or liquidity.
- Illiquid assets may not realise the value entered after costs and taxes.
- Unrealised capital gains tax is not deducted from investment or property values.
Key terms
- Asset
- Something of measurable financial value that you own.
- Liability
- A debt or financial obligation.
- Net worth
- Assets minus liabilities at a point in time.
- Liquidity
- How readily an asset can be converted to cash without a large loss.
Formula
The calculator adds the current values entered for assets and subtracts the current payoff balances entered for liabilities.
Worked example
If assets total $615,000 and liabilities total $335,000, estimated net worth is $280,000.
FAQ
How do I calculate my net worth?
Add the current value of assets you choose to track and subtract current debt balances.
Should I include my house in net worth?
You can include an estimated market value and subtract the mortgage. Use a consistent and realistic valuation method.
Should I include cars and personal property?
Include them only if useful to your tracking, and use conservative resale values rather than replacement cost.
How often should I calculate net worth?
Quarterly or annually is enough for many households. Consistency matters more than daily market movement.
What does negative net worth mean?
Liabilities exceed included assets. It is common early in a career or after education borrowing and can improve through repayment and saving.
What is the formula for net worth?
Net worth = total assets − total liabilities. Assets include cash, investments, retirement accounts, property and vehicles; liabilities include mortgage, credit card, auto, student and personal debt.
How do I calculate net worth from a balance sheet?
Total the asset side, total the liabilities side, and subtract liabilities from assets. The remainder is net worth, which is the same figure a business balance sheet reports as equity.
Common mistakes
- Including a home at an optimistic price while listing the mortgage at full balance.
- Counting expected inheritances, bonuses or unvested equity as assets.
- Leaving out student loans, tax debt or family loans.
- Comparing snapshots taken on inconsistent dates or with different categories.
Tips
- Value assets conservatively and debts at full payoff balance.
- Track the same categories every period so changes reflect progress, not new definitions.
- Keep retirement accounts at current balance rather than a projected value.
- Record the date with each snapshot so you can compare year on year.
Sources and editorial review
Educational estimates only; not personalized financial, tax, legal, lending, investment, or insurance advice.