How to calculate net worth: assets minus liabilities
Net worth is the difference between what you own and what you owe. It is different from monthly income and available cash: it gives a snapshot of your financial position at a particular date.
Net worth calculator
Enter all amounts in the same currency.
The amounts you enter are calculated only on this page, in your browser; nothing is sent anywhere.
Add current asset values
Include cash, bank balances, investments, gold, and other assets you own. Use reasonable current values rather than purchase prices. Convert different currencies to one reporting currency using a consistent date. Changes in exchange rates can affect the total even when you have not bought or sold anything.
Subtract outstanding debts
List outstanding loan, mortgage, and credit card balances. Monthly instalments are not the same as remaining principal. If you include an asset’s value, include the associated debt too. For jointly owned assets, use the share that belongs to you.
Work through an example
| Item | Amount |
|---|---|
| Cash | $10,000 |
| Investments | $25,000 |
| Other assets | $65,000 |
| Total assets | $100,000 |
| Outstanding debt | $30,000 |
| Net worth | $70,000 |
If debts exceed assets, the result is negative. Positive net worth does not mean every asset can be converted to cash immediately.
Separate sources of change
New savings, debt reduction, and asset revaluation can all change net worth. Moving money between your own accounts does not create wealth by itself. Compare months using the same method and reporting currency. This is a calculation guide, not investment or valuation advice.
This article is for general education and is not personal financial, investment, tax, or legal advice.