Calculate your net worth in seconds with our free tracker. Easily input your assets and liabilities to see your financial health. Includes clear breakdowns for real estate, investments, and debt.
Assets
Liabilities
This calculation is based on widely-accepted formulas for educational purposes only, and it is not a recommendation for how to handle your finances. Consult with a financial professional before making financial decisions.
What is Net Worth and Why Should You Track It?
Your Net Worth is the most accurate measure of your overall financial health. Simply put, it is the value of everything you own (Assets) minus everything you owe (Liabilities).
Tracking this number over time allows you to see if you are truly building wealth or simply increasing your spending. Our calculator helps you organize your personal balance sheet so you can make informed decisions about retirement, investing, and debt payoff.
The Net Worth Formula
The calculation is straightforward but powerful:
3. Breaking Down Assets vs. Liabilities
To get an accurate result, it is important to categorize your finances correctly:
| Category | Examples | Purpose |
| Liquid Assets | Cash, Savings, Checking | Immediate funds for emergencies. |
| Invested Assets | 401(k), IRA, Brokerage | Long-term wealth generators. |
| Fixed Assets | Real Estate, Vehicles | High-value physical property. |
| Short-term Debt | Credit Cards, Store Credit | High-interest liabilities to pay off fast. |
| Long-term Debt | Mortgages, Student Loans | Structural debt with longer repayment terms. |
4. Frequently Asked Questions (FAQ)
Net worth is the standard measure of financial health. It is calculated by subtracting your total liabilities (what you owe) from your total assets (what you own):
Other assets typically include physical items of significant resale value that aren’t captured in the main categories. This can include jewelry, art collections, high-end electronics, or ownership stakes in a private business.
A negative net worth occurs when your total debt exceeds the value of your assets. This is very common for young professionals with significant student loans or individuals with “underwater” mortgages where the loan amount is higher than the home’s current market value.
Most financial planners recommend updating your personal balance sheet quarterly or annually. Frequent updates can be stressful due to daily stock market fluctuations, while annual updates provide a clear “big picture” of your long-term wealth building progress.