Net Worth Calculator: The Only Financial Number That Actually Matters
Your income is not your wealth. Your salary is not your net worth. Your 401(k) balance is not your savings rate.
Net worth is: everything you own, minus everything you owe.
Assets: cash, investments, retirement accounts, home equity (market value minus mortgage balance), vehicles (current market value), business interests, other valuables.
Liabilities: mortgage balance, student loans, car loans, credit card balances, personal loans, any other debt.
Subtract liabilities from assets. That's your net worth.
Why This Number Matters More Than Income
High income with low net worth is a common and precarious position. Someone earning $200,000 with $800,000 in debt and no investments is financially less secure than someone earning $80,000 with $400,000 in investments and no debt.
Net worth is the number that determines whether you can weather a job loss, retire when you want to, and fund the goals that actually matter to you. Income is the mechanism for building it.
Tracking It Over Time
Net worth becomes most useful as a trend. Calculate it quarterly. What direction is it moving? Is the rate of change accelerating or slowing?
A few benchmarks that provide rough orientation: median US household net worth by age group (Federal Reserve data):
- 35-44: ~$135,000
- 45-54: ~$247,000
- 55-64: ~$365,000
These are medians — half of households are below. But they give you a sense of where you stand relative to peers.
[Calculate your net worth →](https://doesitaddup.com)
Frequently Asked Questions
Should I include my car in my net worth calculation?
Yes, include your vehicle at its current market value (what you could sell it for today, not what you paid for it). Subtract any outstanding car loan balance from that value. This gives you your actual equity in the vehicle, which is part of your total net worth.
Why does someone making $200,000 a year have lower net worth than someone making $80,000?
Because income and net worth are different things. A high earner can spend everything they make—or more—on debt and expenses, while a lower earner might invest aggressively and avoid debt. Net worth is what you've accumulated and kept; income is just what comes in each year.
How often should I recalculate my net worth?
Calculate it quarterly to track meaningful progress without obsessing over short-term market fluctuations. Looking at the trend over time—whether your net worth is moving up, down, or staying flat—is far more useful than a single snapshot.
Is my home equity really part of my net worth if I'm not selling it?
Yes. Home equity (your home's current market value minus what you owe on the mortgage) is real wealth because you can access it if needed through refinancing, a home equity line of credit, or eventually selling. It's an asset that contributes to your financial security.
This article is for informational purposes only. See our disclaimer.