How to calculate your net worth
Your net worth is the total value of everything you own minus the total of everything you owe. It is a snapshot on one date, not an income figure.
Skip the maths and use the savings calculator
The formula
Net worth = total assets − total liabilities.
Step by step
- List what you own at today's value: property, savings, investments, vehicles.
- List what you owe: mortgage, loans, card balances, overdrafts.
- Subtract the second total from the first.
- Repeat on the same date each year to see the direction of travel.
Worked example
A household with a home, savings and debts
- Assets = 250,000 home + 15,000 savings + 8,000 car = 273,000
- Liabilities = 180,000 mortgage + 12,000 loan + 4,000 cards = 196,000
- Net worth = 273,000 − 196,000
Net worth is 77,000.
Common questions
Calculators for this
Cite this page
APA
Free Calculator. (n.d.). How to calculate your net worth. https://freecalculator.tech/guides/how-to-calculate-net-worth
MLA
"How to calculate your net worth." Free Calculator, https://freecalculator.tech/guides/how-to-calculate-net-worth.
Link
How to calculate your net worth — Free Calculator, https://freecalculator.tech/guides/how-to-calculate-net-worth