Last updated: June 10, 2026
The basic formula
Net worth = what you own minus what you owe. Assets can include cash, investments, retirement accounts, home equity, vehicles, and other meaningful property. Liabilities include mortgages, credit cards, student loans, auto loans, personal loans, and other debts.
Example
If assets total $480,000 and debts total $310,000, estimated net worth is $170,000. That number is useful, but the trend is often more useful than the single snapshot.
What to be careful with
Some assets are easy to value, like checking account balances. Others are estimates, such as home value, vehicles, collectibles, or business interests. Selling costs, taxes, penalties, and market changes can make the real spendable value lower than the number on paper.
Why track it?
Tracking net worth once or twice a year can show whether debt is shrinking, savings are growing, and big financial decisions are moving the household in a better direction.
Use the calculator
Build a quick snapshot with the Net Worth Calculator.
Important note
This guide is educational only and is not financial, investment, tax, legal, or accounting advice.