ΣMoney Calculator

Net Worth Calculator

Net worth is the bluntest measure of financial position: everything you own minus everything you owe. Income is what flows through your hands; net worth is what stayed. Tracking it a few times a year tells you whether your finances are actually moving forward, independent of how busy the flow looks.

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Net worth$171,000
Total assets$335,000
Total liabilities$164,000
Liquid net worth$61,000
  • Net worth$171,000
  • Liabilities$164,000

Counting honestly

Value assets at what they would genuinely fetch, not what you paid. Property at a realistic sale price, cars at market value, and personal items only if you would truly sell them. Optimistic valuations produce a comforting number and a useless one.

Count every liability: mortgage, car and personal loans, student debt, card balances, money owed to family. The temptation to omit awkward debts is precisely why the number should include them.

Liquid versus total net worth

Total net worth includes your home, but you cannot pay bills with a bedroom. Liquid net worth counts only what converts to cash quickly: bank balances and investments minus short-term debts. It is the figure that determines resilience in an emergency.

A high total with weak liquidity is common and fragile: property-rich, cash-poor households survive on paper and struggle in practice. Both numbers matter, for different questions.

What to do with the number

The level matters less than the trend. Compute it quarterly or twice a year, the same way each time, and watch the direction. A rising net worth means your saving and debt repayment are outrunning your spending and interest, which is the entire game in one line.

Frequently asked questions

Should I include my home?

In total net worth, yes, at a realistic sale value, with the mortgage on the liability side. Track liquid net worth separately, excluding it, for a resilience view.

Should I include my car?

At current market value, yes, with any car loan as a liability. Cars depreciate, so update the value rather than using the purchase price.

What about my pension or retirement accounts?

Include their current value under investments. If early withdrawal is restricted, mentally file them outside liquid net worth.

Is a negative net worth bad?

It is common early in life, especially with student debt. The trend matters more than the level: negative and improving beats positive and declining.

How often should I calculate it?

Quarterly or twice a year is enough to see the trend without obsessing over market noise.

What is a good net worth for my age?

Benchmarks vary by country and income, and comparisons mislead. The useful comparison is against your own figure last year.

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