Net Worth Explained: A Simple Snapshot of Your Finances
Net worth is the simplest single snapshot of your financial position: what you own minus what you owe. Here is how to work it out.
What is the Net Worth Calculator?
This calculator totals your assets, which are cash, investments, property and other things you own, and totals your debts, which are loans, card balances and other amounts you owe. Net worth is assets minus debts. A positive result means you own more than you owe, while a negative result means debts are larger than assets.
How to use it
- Enter the value of each asset: cash, investments, property and anything else.
- Enter each debt: loans, card balances and other debts.
- Press Calculate to see your asset total, debt total and net worth.
Worked example
Assets of 180,000 (cash 5,000, investments 20,000, property 150,000, other 5,000) and debts of 85,000 (loans 80,000, cards 5,000, other 0) give a net worth of 95,000.
How do you calculate net worth?
Add up everything you own to get total assets, add up everything you owe to get total debts, then subtract debts from assets. The result is your net worth. Tracking it over time is more useful than any single figure, because it shows whether your position is improving.
Frequently asked questions
What counts as an asset?
Anything of value you own, such as money in accounts, investments, property and vehicles. Enter current values, not what you originally paid, for the most useful result.
Should I include my mortgage?
Yes, include the property value as an asset and the remaining mortgage balance as a loan, so both sides of the same item are counted.