Net Worth Calculator

Do you know what your net worth is? A net worth calculator can help you discover the exact answer.

Fortunately, determining your own financial picture isn’t that difficult. It’s time to gain clarity and get a clear handle on where your finances stand now and how they could be improved over time.

Calculate your personal net worth today with our simple guide. Let’s get started!



Enter the current market value of your home and any other real estate you own.

Enter the current value of your car, truck, RV or other vehicles.

List cash and balances in your checking and savings accounts.

List the value of investments such as mutual funds in your brokerage account.

Include the total current value of all savings in retirement accounts.

Include collectibles, jewelry, savings bonds, annuities, and cash value of life insurance.


List the balance you currently owe on mortgage loans and any home equity line of credit.

List the money you still owe on vehicle and auto loans (not monthly payments).

Add up how much you owe in credit card debt (payoff balances, not monthly payments).

Include the amount of student loans you owe using the current outstanding balance.

List the combined current balance owed on all personal loans, household loans, etc.

Enter the amount of unpaid taxes, medical bills and other liabilities.

Net Worth


What is Net Worth?

Net worth is a key concept in personal finance and is often used to measure an individual’s financial health. It’s calculated by adding up all of your assets such as cash, investments, savings accounts, savings bonds, retirement accounts, real estate, and other assets minus any liabilities (such as total credit card debt, student loan debt, and personal loans).

In other words, it’s the difference between what you own and what you owe. Knowing your net worth can help you make better financial decisions, set achievable goals, and assess where you stand compared to your peers.

What are Assets?

Assets are any resources that can be valued and converted into cash. They include items such as real estate, investments, mutual funds, stocks, patents, trademarks, copyrights, and retirement savings accounts.

Assets can be owned by individuals or businesses and may generate income, either directly or indirectly.

What are Liabilities?

Liabilities are debts or obligations that must be paid off over time such as the current principal balance remaining on your home and other real estate mortgages, auto loans total amount, credit card debt, college or student loans total amount, and other types of financial obligations.

Liabilities reduce the amount of money you have available for other purposes, such as investing, saving, or making major purchases.

net worth calculator

Why is Net Worth Important?

Net worth is a key concept in personal finance and something everyone should understand. Here are five reasons why net worth is essential:

  • Provides an accurate overview of your finances. By calculating your net worth, you can get a clear picture of your financial situation and how it has evolved over time. Things like income, expenditures, and investments can all have an impact on your net worth, and knowing where you stand is essential for making good financial decisions.
  • Helps you make informed decisions. Knowing where your finances stand can help you make informed decisions about investments, savings, and other financial matters. A net worth calculator can give you an overview of your financial standing, so you can focus on setting achievable goals.
  • Assists in setting achievable goals. By understanding your net worth, you can set realistic and achievable goals for your future financial success. This can include things like saving for retirement, paying off debt, or investing in stocks and other assets.
  • Gives you a benchmark for comparison. By comparing your net worth to those of your peers, you can gauge where you stand in the financial world. This will help you stay competitive and take the necessary steps to improve your financial standing.
  • Can be used to track progress. Your net worth can be used as a tool for tracking your financial progress over time, giving you an accurate picture of your successes and failures. This can help you make smarter decisions about your money and better understand the impact of different financial strategies.

Using this Net Worth Calculator

Like our business loan calculator, savings calculator, and really all of our small business calculators, our net worth calculator is easy to use.

All you need to do to calculate your net worth is enter your assets and liabilities in their respective fields. Once you’ve done that, the calculator will automatically generate your net worth and display it in the lower left corner.

Entering a higher dollar amount of liabilities than assets will result in a negative net worth calculation.

How to Decide the Value of Your Assets and Liabilities

Net Worth Calculator

When calculating your net worth, you will need to determine the value of your assets and liabilities.

Here is a short step-by-step guide on how to decide the value of any assets and liabilities you may have:

  1. For most assets, the current market value is simply what you paid for them. If you own real estate, stocks, other investments, IRAs, 401k’s, and other retirement savings accounts, the value of these assets is typically based on their actual market value on the day of calculation.
  2. For liabilities like mortgages and car loans, the value is the remaining balance owed. For credit cards, the value is usually the total amount of debt you owe.
  3. Once you’ve calculated the value of your assets and liabilities, you will be able to determine your net worth. Having a balance sheet or income statement can be useful in helping you determine the value of your assets and liabilities. Read more about what is a balance sheet and what is an income statement if you’re unsure.

How to Improve Your Net Worth

As a business owner, improving your net worth should be a top priority. Here are five ways that you can improve your net worth:

  • Pay down debt. The quickest and easiest way to increase your net worth is to pay off debt such as your home and other mortgage principal owed, credit card debt, etc. Doing so will reduce your liabilities, free up more money for investing and other purposes, and will save you money in the long run by avoiding interest payments.
  • Increase income. Look for ways to earn more money, either through side gigs, promotions, or new projects. Doing so will give you more money to invest and pay off debt. This can lead to a higher net worth in the long run.
  • Annual asset growth. Make sure to invest in assets that will grow over time, such as stocks and real estate. Doing so can help you build wealth in the long run and increase your net worth.
  • Reduce expenses. Evaluate where you’re spending and look for ways to cut costs. This will leave you with more money to invest and pay down debt. You may also be able to reduce the amount of taxes you owe if you have a business.
  • Build an emergency fund. Having a cash reserve for unexpected expenses can help protect your financial health and avoid taking on more debt. Aim to set aside three to six months’ worth of expenses in a high-yield savings account. This will provide you with a cushion if the unexpected happens.

net worth calculator

How is Net Worth Used in Buying a Franchise?

Net worth can be an important factor when buying a franchise. It is used to evaluate whether you have the financial means to successfully run a business and the ability to cover any losses or debts you may incur.

Lenders will typically require that you have a certain amount of assets and a minimum net worth to be approved for a business loan. Your net worth can also help lenders determine how much risk they are willing to take when lending to you.

Be sure to check out our franchise guide and discover the most profitable franchises if you’re interested in opening a franchise of your own.

What is a good net worth by age?

Net Worth Calculator

Determining a good net worth by age requires considering various factors, including income, expenses, and long-term financial objectives. Here are some insights to help gauge what might be considered a good net worth at different stages of life:

In Your 20s: During your 20s, building a substantial net worth may not be a primary focus as you may be starting your career or pursuing further education. However, it is essential to lay the foundation for financial stability and good financial habits. Aim to save and invest consistently, even if the actual net worth figure may not be substantial yet.

In Your 30s: By your 30s, you should be steadily building your net worth as your income likely increases. Financial responsibilities, such as student loans or mortgage payments, may still be present. A good target in your 30s is to have a net worth equal to your annual income or even higher, depending on your personal circumstances.

In Your 40s: By the time you reach your 40s, your net worth should have grown significantly, reflecting your increased earning potential and years of accumulating assets. It is suggested that a good net worth at this age is around twice your annual income, as this indicates financial stability and progress towards long-term goals.

In Your 50s: In your 50s, your net worth should ideally continue to grow as you approach retirement. A good target is to have a net worth that is five to ten times your annual income, which can provide a sense of security and preparedness for retirement.

In Your 60s and Beyond: During your 60s and beyond, your net worth becomes even more critical as it directly impacts your retirement lifestyle. A good net worth at this stage is at least ten to fifteen times your annual income, considering the years of retirement ahead and the need for sustainable income streams.

Other Factors to Consider: While age-based net worth guidelines offer some direction, they are not the only factors to consider. Your net worth should also align with your financial goals, lifestyle choices, and risk tolerance. Other considerations include:

  • Debt Management: Minimizing high-interest debts and managing debt responsibly is essential for healthy net worth growth.
  • Investment Strategies: Diversifying your investment portfolio and seeking professional advice can contribute to long-term wealth accumulation.
  • Emergency Fund: Maintaining an emergency fund equivalent to three to six months’ worth of living expenses can provide a safety net during unforeseen circumstances.
  • Lifestyle Choices: Personal lifestyle choices, such as homeownership and budgeting, impact how much of your income goes towards savings and investments.

Remember that net worth is a dynamic measure that changes over time. It is not a one-time target but an ongoing journey influenced by financial discipline, wise decisions, and consistent efforts to improve your financial well-being. Assess your financial situation regularly and adjust your goals accordingly to ensure that your net worth aligns with your evolving life stages and aspirations.

Age RangeRecommended Net WorthOther Considerations
In Your 20sBuilding a foundation for stabilitySave and invest consistently
In Your 30sEqual to or higher than annual incomeManage financial responsibilities
In Your 40sAround twice annual incomeReflect increased earning potential and assets
In Your 50sFive to ten times annual incomePrepare for retirement and secure financial future
60s and BeyondTen to fifteen times annual incomeImpact on retirement lifestyle and income streams

What net worth is considered rich?

Net Worth Calculator

When evaluating what net worth is considered “rich,” several factors come into play, shaping the perception of wealth and affluence. While there is no one-size-fits-all definition, the following aspects can influence one’s perspective:

  • Lifestyle and Expenses: The cost of living and individual lifestyle choices greatly impact what net worth is considered rich. For some, having a net worth that covers all expenses comfortably may be deemed wealthy, while others may set their sights on extravagant luxury.
  • Financial Goals: Personal financial goals play a significant role in defining wealth. For someone aiming to achieve financial independence, a net worth sufficient to sustain passive income may signify richness.
  • Regional and Cultural Variations: Net worth that qualifies as rich in one region or culture may differ significantly from another. The standards of living, average incomes, and societal norms can all influence the perception of wealth.
  • Financial Security: For many, the sense of being “rich” goes beyond mere figures on a balance sheet. It may encompass having a strong financial safety net, such as emergency funds, insurance, and investments for retirement.
  • Assets and Liabilities: Net worth takes into account both assets and liabilities. Owning valuable assets and having minimal debts can contribute to a sense of financial prosperity.
  • Time and Effort: Accumulating wealth often involves time, effort, and hard work. Someone who has worked diligently for decades to build a substantial net worth may feel rich regardless of the actual figure.
  • Philanthropy and Giving: For some, true richness may come from the ability to make a positive impact through philanthropy and charitable contributions.

Ultimately, the definition of being “rich” varies from person to person, influenced by personal values, ambitions, and aspirations. While a high net worth is often associated with financial success and abundance, true richness may also be found in a fulfilling and purposeful life, regardless of monetary wealth.

Does Net Worth Include My Business?

Net worth is an important factor when evaluating the financial health of an individual or business and can be used to determine how much risk a lender is willing to take.

When calculating your net worth, it is important to include the value of your business assets, such as inventory and equipment. This will give you a better understanding of your financial standing and help lenders assess the amount of risk they are willing to take when lending to you.

Including your business’ assets in your net worth calculation will also enable you to track changes in the value of your business over time.

Check out our buying a business checklist and selling a business checklist if you’re interested in buying or selling a business to increase your net worth.

Is net worth the same as profit?

No, net worth and profit are not the same. Net worth is the total value of a person’s or company’s assets minus their liabilities. Assets are things a person or company owns, such as cash, investments, and property. Liabilities are debts, like credit card debt or mortgages.

Profit, on the other hand, is the financial gain or loss that a person or company has made during a certain period of time. It’s calculated by subtracting expenses from revenue.