Net Worth Calculator: What Is My Net Worth?
Net worth is assets (what you own) minus liabilities (what you owe). Our free calculator can measure your net worth.
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What is net worth?
Net worth is the value of all your assets (such as your home, if you own one, your car, and money in savings, checking or retirement accounts) minus your liabilities (such as a mortgage, student loans, car loans or credit card debt).
The formula for net worth is:
Net worth = Total assets - total liabilities
You can think of net worth as everything you own less all that you owe.
There's value in knowing your worth
If you didn't know your net worth before today, you're not alone. Plenty of people don't know their net worth, or don't understand what net worth even is.
"No one wants to admit they don’t know and we’re all afraid of asking the questions we think we’re supposed to know already," Valerie A. Rivera, a certified financial planner and founder of FirstGen Wealth, said in an email interview.
"So instead, everyone stays quiet, sitting in the dark together, thinking they’re the only one," she said.
Let's fix that.
See where you stand compared to households like yours, and get steps you could take to grow from here.
NWWP is an SEC-registered investment adviser. Registration does not imply skill or training. Calculator by NerdWallet, Inc., an affiliate, for informational purposes only.
Here's how to find your net worth
To calculate your net worth, take inventory of what you own, as well as your outstanding debt. And when we say "own," we include assets that you may still be paying for, such as a car or a house.
For example, if you have a mortgage on a house with a market value of $200,000 and the balance on your loan is $150,000, your house adds $50,000 to your net worth.
Your income is not part of your net worth
Net worth is a measure of wealth, not income.
"You don’t need a high income to have a positive net worth," Rivera said. "What matters more is spending less than you make, and investing the difference."
"I’ve seen couples earning $500,000 a year with negative net worth because they’re spending $525,000 and racking up credit card debt. Income doesn’t automatically translate to wealth."
On the other hand, even people with modest incomes can accumulate significant wealth and a high net worth if they buy appreciating assets and are prudent savers.
Assets and liabilities explained
If you’re not sure what constitutes an asset or a liability, here are some guidelines.
Assets:
Money in your checking, savings and retirement accounts.
Your home, if you own.
Investments that you could sell for cash, such as stocks and bonds.
Cars, boats, art, collections and other things you own.
Land.
Liabilities:
Money you owe to another person or entity.
Mortgages.
Car loans.
Credit card balances.
Medical debt.
Student loans.
Business loans.
Personal loans.
Payday loans and title loans.
The bottom line
People don't walk around with their net worth statements in their hands, Rivera said. Because wealth isn’t about what you can show off.
That person you see driving a 12-year-old car? They could have a $4 million investment portfolio, she said.
If you want to grow your net worth, spending wisely and saving and investing regularly can have a big impact, she said. So she encourages people to avoid analysis paralysis and just get started.
"Some clients believe they need to understand everything perfectly before taking action," she said "But waiting too long to invest often delays the compounding that actually drives net worth over time."
Former NerdWallet writer Max Ramirez contributed to this report.