Net Worth
Calculate your current net worth by totaling your assets and subtracting your liabilities.
Net worth is calculated by subtracting your total liabilities from your total assets.
Keeping track of your money isn’t always easy- especially when you’ve got savings, investments, loans and everyday expenses all mixed together. That’s where knowing your net worth helps. It’s like a financial snapshot that shows where you truly stand.
What’s a Net Worth Calculator?
Think of it as a personal balance sheet for your life. It adds up everything you own (like cash, property, or investments) and subtracts everything you owe (like loans or credit card debt). The final number is your net worth- a clear measure of your financial health.
How to Use the Net Worth Calculator
You don’t need fancy tools. Just follow these steps:
1. List Your Assets: Enter the value of what you own- savings, home, car, stocks, retirement funds, etc.
2. List Your Debts: Add what you owe- mortgages, student loans, credit card balances, etc.
3. Hit Calculate: The tool does the math instantly.
That’s it! You’ll see your net worth as a single number.
Why Track Net Worth?
- Spot Progress: If you check yearly, you’ll see if you’re moving forward (e.g., paying off debt or growing investments).
- Make Smarter Choices: It highlights where to focus—like paying off high-interest loans or boosting savings.
- Plan Big Goals: Buying a home, retiring, or starting a business? Your net worth shows if you’re on track.
Net Worth vs. Income: What’s the Difference?
- Income = What you earn each year.
- Net Worth = What you’ve kept and grown over time.
Example: A high earner with massive debt may have a lower net worth than someone with modest income but no debt and solid savings.
Benefits of Checking Regularly?
- No Surprises: Avoid that “Where did my money go?” feeling.
- Debt Awareness: See how loans impact your long-term goals.
- Confidence Boost: Watching your net worth climb is motivating!
In a Nutshell
Your net worth isn’t about being rich—it’s about being financially aware. Whether you’re just starting or planning retirement, this number helps you make decisions with clarity. And the best part? Checking it takes 5 minutes.