Net Worth Calculator
A net worth calculator is a tool that helps you estimate your net worth, which is the total value of what you own minus what you owe.
Basic formula:
Net Worth = Assets − Liabilities
Where:
Assets (things you own) may include:
- Cash and savings accounts
- Investments (stocks, bonds, retirement accounts)
- Real estate (home, land)
- Vehicles
- Business ownership
- Valuable personal property
Liabilities (debts you owe) may include:
- Mortgages
- Car loans
- Credit card balances
- Student loans
- Personal loans
- Other debts
Example:
Suppose you have:
- Savings: $10,000
- Investments: $25,000
- Car value: $15,000
- Home value: $200,000
Total assets = $250,000
You owe:
- Mortgage: $150,000
- Car loan: $5,000
Total liabilities = $155,000
Net worth = $250,000 − $155,000 = $95,000
A net worth calculator simply automates this calculation and can help you:
- Track financial progress over time
- Set savings goals
- Understand your financial position
- Plan for retirement or major purchases
You can calculate it with a spreadsheet, a financial app, or an online net worth calculator.
Share To
