Net Worth Calculator
Your net worth is the most accurate measure of your financial health. It's simply the difference between what you own (assets) and what you owe (liabilities). Use our free calculator below to instantly see where you stand.
Your Assets (What You Own)
Checking, savings, and emergency funds.
Brokerage accounts, 401(k), IRA, crypto, etc.
Current market value of your primary residence and rentals.
Current resale value of cars, jewelry, art, etc.
Your Liabilities (What You Owe)
The remaining balance on all real estate loans.
Total amount owed on vehicle loans.
Remaining balance on all student debt.
Personal loans, credit card balances, medical debt.
What is Net Worth?
Net worth is the total value of everything you own (assets), minus the total of everything you owe (liabilities). It is considered the most reliable metric for determining your overall financial health and progress over time.
While income tells you how much money you make, net worth tells you how much money you actually keep and grow. A high income doesn't necessarily mean a high net worth if that income is spent entirely on lifestyle and accumulating debt.
The Net Worth Formula
The calculation is simple:
Net Worth = Total Assets - Total Liabilities Breaking Down Assets
Assets are things that have economic value. In the context of personal finance, they are generally broken down into three categories:
- Liquid Assets: Cash in checking and savings accounts, money market funds, and short-term certificates of deposit (CDs). These can be quickly converted to cash.
- Investment Assets: Brokerage accounts, retirement accounts (401k, IRA, Roth IRA), stocks, bonds, mutual funds, and cryptocurrency.
- Physical/Tangible Assets: Real estate (your primary home and rental properties), vehicles, jewelry, and art. These are harder to convert to cash quickly.
Breaking Down Liabilities
Liabilities are your debts or financial obligations. They typically include:
- Secured Debt: Mortgages and auto loans. These are backed by collateral (your house or car).
- Unsecured Debt: Credit card balances, personal loans, student loans, and medical debt.
Average Net Worth in America
According to the most recent Survey of Consumer Finances by the Federal Reserve (2022 data), the median net worth of all U.S. families is $192,900. The average (mean) net worth is much higher at $1,063,700, but this number is heavily skewed by the ultra-wealthy.
Because net worth typically grows as you age and pay down debt while accumulating assets, looking at net worth by age provides a much better benchmark:
| Age Group | Median Net Worth | Average Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35 - 44 | $135,600 | $543,200 |
| 45 - 54 | $247,200 | $975,800 |
| 55 - 64 | $320,700 | $1,566,900 |
| 65 - 74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: Federal Reserve Survey of Consumer Finances (2022)
How to Increase Your Net Worth
Growing your net worth comes down to increasing the gap between your assets and liabilities. There are three primary ways to do this:
- Pay Down Debt: Every dollar of debt you pay off (especially high-interest debt like credit cards) is a guaranteed return on investment and directly increases your net worth.
- Increase Savings and Investments: Maximize contributions to tax-advantaged retirement accounts, invest in index funds, and build a robust emergency fund.
- Appreciation of Assets: Over time, investments like stocks and real estate tend to increase in value. This passive growth is a major driver of wealth over long periods.
Frequently Asked Questions
How is net worth calculated?
Net worth is calculated by taking the total value of all your assets (what you own, such as cash, investments, real estate, and vehicles) and subtracting all your liabilities (what you owe, such as mortgages, student loans, and credit card debt). The formula is: Net Worth = Total Assets - Total Liabilities.
What is a good net worth by age?
According to the Federal Reserve's Survey of Consumer Finances, the median net worth for Americans under 35 is roughly $39,000. For ages 35-44, it jumps to around $135,000, and for 45-54, it sits near $247,000. Keep in mind these are medians, meaning half of the population has more and half has less.
Does a mortgage count against net worth?
Yes, a mortgage is a liability, meaning the remaining balance you owe counts against your net worth. However, the current market value of your home is counted as an asset. Therefore, your home equity (home value minus the mortgage balance) contributes positively to your overall net worth.
Should I include my car in my net worth?
Yes, you should include the current resale value of your car as an asset. If you have an auto loan, the remaining balance of the loan must be included as a liability. Cars are depreciating assets, meaning their value generally decreases over time.
Can my net worth be negative?
Yes, it is common for net worth to be negative, especially for young adults or recent graduates who have significant student loan debt or other liabilities but have not yet had the time to accumulate substantial assets. Over time, as debts are paid down and assets are built, a negative net worth can become positive.