How this calculator works
Net worth is everything you own at today's value minus everything you owe. Liquid net worth counts only money you could reach quickly (checking, savings and investments, not retirement accounts, the house or the car) minus all debts. Retirement balances are counted before tax.
- Net worth = total assets − total debts.
- Liquid net worth = checking and savings + investments − all debts. Retirement accounts, the house and the car are left out because they're hard to turn into cash quickly.
- Debt-to-asset ratio = total debts ÷ total assets × 100. Home equity = home value − mortgage balance.
Worked example
With these inputs: checking and savings $8,000; investments $15,000; retirement accounts $42,000; vehicles $12,000; car loans $9,000; student loans $18,000; credit card balances $3,500.
The result is your net worth $46,500.00, with total assets $77,000.00 and total debts $30,500.00. Work it out every few months with the same method. The trend tells you more than any one number.
What counts as an asset
Use today's value, not what you paid: the balance on your statements for bank, investment and retirement accounts, a realistic sale price for the home, and the private-party resale value for vehicles. Leave out everyday belongings unless you could sell them for real money.
Retirement balances are counted before tax. If you'd like a more cautious number, enter them after an estimate of the tax you'd owe on withdrawal.
Why liquid net worth matters
Two people with the same net worth can be in very different spots. One has it in a house and a 401(k) and couldn't cover a surprise bill; the other has cash. Liquid net worth shows how much you could reach without selling the house or touching retirement savings. If it's negative, an emergency fund is the first thing to build.
Track the trend, not the number
Net worth moves with markets and home prices, so a single reading tells you little. Work it out every few months with the same method. Paying a debt down raises it just as surely as saving does, which makes it a useful scoreboard when you're working through debt.
Frequently asked questions
How do I calculate my net worth?
Add up everything you own at today's value, add up everything you owe, and subtract the debts from the assets. In the example: $77,000 − $30,500 = $46,500.
What is liquid net worth?
Your cash and investments you could sell quickly, minus all your debts. It leaves out retirement accounts, your home and vehicles.
Should I include my house in my net worth?
Yes, at a realistic sale price, with the mortgage as a debt. The difference is your home equity, which the calculator shows separately.
Is it bad to have a negative net worth?
It's common early on, especially with student loans or a new car loan. What matters is the direction it's moving.
Should I include my car?
Yes, at its resale value, with any car loan as a debt. Cars lose value each year, so update it when you recalculate.