How to calculate net worth
Build a simple personal balance sheet.
1
List assets
Cash, investments, property, vehicles and anything else with a resale value.
2
List liabilities
Mortgage, loans, credit cards and other balances.
3
Subtract
Review the trend over time rather than a single snapshot.
What does this tool do?
Net worth is what you own minus what you owe. It is a snapshot, not a score: it ignores income, liquidity and the cost of selling assets. Use it to track the direction of travel over time.
The Formula
Net worth = Total assets − Total liabilitiesFrequently Asked Questions
Should I include my home in net worth?
Yes, if you use a realistic market value and include the mortgage as a liability. Many people also track net worth excluding the home to see investable assets separately.
How often should I update net worth?
Monthly or quarterly is enough for most people. Daily updates add noise without improving decisions.