About this calculator
Net worth is the single number that tells you whether you are building wealth or standing still. It is simply what you own minus what you owe, and unlike income it captures the effect of debt paydown and asset growth.
How it works
Assets include cash, investments, property, and vehicles at a conservative estimate rather than optimistic one. Liabilities include your mortgage and every other debt. The gap is your net worth, and a negative number is a starting point rather than a verdict.
Frequently asked questions
What is net worth?
Net worth is the value of everything you own minus everything you owe. It includes cash, investments, property, and other assets, minus mortgages, loans, and credit card balances.
Is a negative net worth bad?
Not permanently. Many people start with negative net worth through student loans and then build steadily. What matters is the direction of travel: a negative number that is becoming less negative is a good sign.
Should I include my home in net worth?
Yes, both the property value and the mortgage balance. The difference is your equity, and including both keeps the calculation accurate. If the property is your primary residence, treat it more carefully than liquid assets when making decisions.
How often should I calculate net worth?
Quarterly is a good rhythm. It is frequent enough to catch problems early and rare enough that you do not obsess over daily fluctuations in market value.
What is a good debt-to-asset ratio?
Lenders often look for under 20% to be comfortable and under 43% for mortgage qualification. For personal planning, the lower the better, since assets can fall in value while debts do not.
Does rental property count in net worth?
Yes, at its value minus the mortgage on it. Be consistent about whether you use gross value or net equity, and apply the same method every time you track it.