Value what you own
Use account balances for financial assets and reasonable resale values for property. Avoid purchase prices when the asset could sell for more or less today.
Your balance sheet
Net worth calculator
Add what you own, subtract what you owe, and see the clearest single snapshot of your finances today.
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What you own
Add your assets
What you owe
Add your liabilities
Use current balances. Enter each debt as a positive amount.
Future scenario
Explore a direction
These simple assumptions are not a forecast. They apply to the whole asset and debt totals once per year.
Your scenario
Net worth over time
This table repeats your assumptions each year. It is useful for comparing directions, not predicting market returns or loan payoff dates.
| Point in time | Assets | Liabilities | Net worth |
|---|---|---|---|
| Today | $620,000.00 | $320,000.00 | $300,000.00 |
| Year 1 | $644,800.00 | $304,000.00 | $340,800.00 |
| Year 2 | $670,592.00 | $288,800.00 | $381,792.00 |
| Year 3 | $697,415.68 | $274,360.00 | $423,055.68 |
| Year 4 | $725,312.31 | $260,642.00 | $464,670.31 |
| Year 5 | $754,324.80 | $247,609.90 | $506,714.90 |
| Year 6 | $784,497.79 | $235,229.41 | $549,268.38 |
| Year 7 | $815,877.70 | $223,467.94 | $592,409.76 |
| Year 8 | $848,512.81 | $212,294.54 | $636,218.27 |
| Year 9 | $882,453.32 | $201,679.81 | $680,773.51 |
| Year 10 | $917,751.45 | $191,595.82 | $726,155.63 |
The balance-sheet view
How net worth works
Net worth brings accounts that usually feel separate onto one page. Cash, retirement savings, investments, property, and vehicles sit on the asset side. Mortgages, cards, and loans sit on the liability side. The difference is the part that belongs to you.
The number matters most as a trend. One snapshot tells you where you are. Repeating the same complete calculation shows whether saving, investing, debt payoff, and changing asset values are moving the whole picture forward.
List every payoff balance
Include secured and unsecured debt. A financed home or car belongs on both sides: the full item value is an asset and the unpaid loan is a liability.
Compare the same snapshot
Recalculate on a regular schedule with the same categories. Consistency makes the trend useful even when individual investments and property values move around.
Net worth terms worth knowing
- Asset
- Something you own with measurable value, such as cash, an investment account, a home, or a vehicle.
- Liability
- Money you currently owe, including mortgages, credit cards, student loans, auto loans, and personal debt.
- Equity
- The part of an asset you own after related debt is subtracted. Home value minus mortgage debt is home equity.
- Market value
- A reasonable estimate of what an asset could sell for today, not what you originally paid for it.
- Payoff balance
- The amount required to satisfy a debt today. It can differ slightly from the balance on a monthly statement.
- Debt-to-asset ratio
- Total liabilities divided by total assets. A falling ratio means debt is taking up a smaller share of what you own.
Build a complete list
What counts in a net worth calculation?
Include items that have a meaningful financial value and every balance you are obligated to repay. Keep tiny household possessions out unless they have a realistic resale market.
Liquid assets
Checking, savings, cash, money market funds, and certificates of deposit. These are the easiest assets to value and access.
Invested assets
Retirement accounts, brokerage accounts, stocks, bonds, funds, and other investments at their current account or market value.
Physical assets
Homes, other real estate, vehicles, and valuable property at a conservative sale value. Do not use insured replacement cost.
All liabilities
Mortgages, cards, student and auto loans, personal loans, medical debt, tax debt, and any business debt you personally guarantee.
Read it honestly
What your net worth does and does not say
The headline total is useful, but it cannot describe liquidity, risk, monthly affordability, or the life behind the balance sheet.
What the number reveals
- Overall financial position. It combines owned value and owed balances without treating one account in isolation.
- Leverage. The debt-to-asset ratio shows how much debt sits behind the assets on the other side.
- Direction over time. A consistent series shows the combined effect of saving, investing, repayment, and valuation changes.
- Concentration. The asset total may look strong while most of it is locked in one home or retirement account.
What the number leaves out
- Cash flow. Net worth can rise while the monthly budget is under pressure, or fall temporarily during a planned purchase.
- Taxes and selling costs. Pretax accounts, capital gains, commissions, and closing costs can reduce spendable proceeds.
- Insurance and future income. A policy benefit, salary, or Social Security payment is not a current asset balance.
- Personal progress. Different starting points make comparisons with another household incomplete and often misleading.
Move the trend
Ways net worth can grow
Every improvement comes from one of two places: assets rise or liabilities fall. The most durable plan usually works on both.
Build a cash buffer
An emergency fund increases assets and reduces the chance that an unplanned expense becomes new high-interest debt.
Capture retirement match
An employer match adds to invested assets immediately. Contributions then have time to compound, although returns are never guaranteed.
Reduce expensive debt
Paying principal lowers liabilities dollar for dollar. Reducing high-rate debt also frees future cash flow from interest.
Track without overreacting
Markets and property values fluctuate. A regular schedule helps you see the long trend without turning every price change into a decision.
Common questions
Net worth calculator FAQ
What is net worth?
Net worth is the current value of everything you own minus every debt you owe. It is a balance-sheet snapshot, not income, cash flow, or a credit score. A person can earn a high salary and still have a low net worth if debt is high, while someone with modest income may build substantial net worth by saving consistently and owning assets over time.
How do I calculate my net worth?
List each asset at a realistic current value, total those values, then list the current payoff balance of every liability. Subtract total liabilities from total assets. For example, $500,000 of assets and $320,000 of debt produces a net worth of $180,000. Do not subtract the mortgage twice: the home goes under assets and the unpaid mortgage goes under liabilities.
Is a house an asset if it has a mortgage?
Yes. The house and mortgage are two separate sides of the balance sheet. Enter the home at its current market value as an asset and the remaining mortgage payoff amount as a liability. The difference is your home equity. The same treatment applies to a financed vehicle, although vehicles often lose value faster than the loan balance falls.
Should retirement accounts count toward net worth?
Yes. A 401(k), 403(b), IRA, pension cash balance, and similar account are assets you own. Use the current account balance. This calculator does not reduce pretax retirement accounts for future income tax because the eventual tax depends on withdrawal timing, account type, other income, and future tax law.
What is a good net worth by age?
There is no universal number that accounts for income, education, family size, housing market, retirement benefits, or when someone started saving. Age-based benchmarks can provide context, but your own trend is usually more useful. Compare the same complete list of accounts at regular intervals and focus on whether assets are growing, high-cost debt is falling, and cash flow supports the direction you want.
What does a negative net worth mean?
It means total liabilities are greater than total assets today. That is common early in a career or after financing education, a home, or a vehicle. It is a measurement, not a verdict. Paying down principal, building emergency savings, contributing to retirement, and avoiding new high-interest debt can all move the number upward.
How often should I calculate net worth?
Quarterly is frequent enough for many people to see direction without reacting to every market move. Monthly can be useful during a debt payoff or savings push, while once a year may be enough for a simple household. Use the same categories and valuation method each time so the comparison stays meaningful.
How accurate is the future net worth projection?
It is a scenario, not a forecast. The projection applies one annual percentage to the full asset balance and another reduction percentage to total debt. It does not know future contributions, withdrawals, purchases, loan interest, taxes, market volatility, or changes in property value. Change the assumptions to explore a range, and give more weight to the current calculation than the future figure.
The formula
Net worth = total assets - total liabilities
Assets use today's account balance or realistic market value. Liabilities use the current balance owed. The future scenario grows or declines the asset total and reduces the remaining liability total once per year, then applies the same subtraction.
- Exact cent totals
- Assets and debt kept separate
- Transparent yearly assumptions
This calculator provides an educational estimate, not financial, tax, legal, valuation, or investment advice. Current values and future assumptions may be incomplete or change substantially. The projection excludes contributions, withdrawals, loan interest, taxes, fees, transaction costs, and market volatility. Consider a qualified professional for guidance about your circumstances.
Keep the whole picture
One snapshot is useful. The trend is where the story lives.
Track cash, debt, property, investments, and net worth together in Pocketwatch.