Net Worth Calculator: Track Your True Wealth

Your salary tells people what you earn. Your net worth tells you what you actually have. There are plenty of people earning $200,000 a year with a negative net worth because they've racked up more debt than they've accumulated in assets. And there are people earning $60,000 who have quietly built a net worth of $500,000 or more through disciplined saving and investing over time. Income is what flows through your hands. Net worth is what sticks.

Let's break down exactly what net worth is, how to calculate yours, what the benchmarks look like by age, and why tracking this number over time is one of the most motivating things you can do for your financial life.

What Is Net Worth?

Net worth is simply the difference between what you own (assets) and what you owe (liabilities). The formula is as straightforward as it gets:

Net Worth = Total Assets - Total Liabilities

If you own $150,000 in assets and owe $80,000 in debt, your net worth is $70,000. If you own $50,000 in assets and owe $120,000 in debt (hello, student loans), your net worth is negative $70,000. A negative net worth doesn't make you a failure. It just means you have more building to do.

What Counts as Assets?

Assets are everything you own that has monetary value. Common assets include:

• Cash and bank accounts: Checking, savings, money market accounts, CDs
• Retirement accounts: 401(k), 403(b), IRA, Roth IRA, pension value
• Taxable investment accounts: Brokerage accounts, individual stocks, bonds, mutual funds, ETFs
• Real estate: Your home's current market value, rental properties, land
• Vehicles: Current market value (not what you paid)
• Other valuables: Jewelry, art, collectibles (at realistic resale value, not sentimental value)
• Business equity: If you own part of a business
• HSA balance: Health savings accounts have a cash value

Be honest with valuations. Your car is worth what someone would pay for it today, not what you paid three years ago. Your home is worth its estimated market value, not the price you hope it might reach someday.

What Counts as Liabilities?

Liabilities are everything you owe to someone else:

• Mortgage balance: The remaining principal on your home loan
• Student loans: Federal and private
• Auto loans: Remaining balance
• Credit card debt: Current balances
• Personal loans: Any outstanding borrowed money
• Medical debt: Unpaid medical bills
• Other debts: Home equity loans, lines of credit, money owed to family

Calculate Your Net Worth

Use the calculator below to add up your assets and liabilities. It'll compute your net worth instantly and help you see where you stand.

Net Worth Benchmarks by Age

The Federal Reserve's Survey of Consumer Finances (SCF) provides the best data on American household net worth. Here are the median and average figures from the most recent survey. Note that the average is much higher than the median because extremely wealthy households pull the average up. The median is a better representation of the "typical" household:

• Under 35: Median net worth around $39,000; average around $183,000
• 35-44: Median around $135,000; average around $549,000
• 45-54: Median around $247,000; average around $975,000
• 55-64: Median around $364,000; average around $1,566,000
• 65-74: Median around $410,000; average around $1,794,000
• 75+: Median around $335,000; average around $1,624,000

A few things stand out. First, the gap between median and average is enormous, which means wealth is highly concentrated. Second, net worth typically peaks between 65 and 74, then declines as retirees spend down their savings. Third, if you're under 35 with a positive net worth of any amount, you're doing better than a lot of your peers.

A Better Benchmark: The Wealth Formula

Comparing yourself to national medians is useful but blunt. A more personalized benchmark comes from "The Millionaire Next Door" by Thomas Stanley, which suggests this formula:

For a 35-year-old earning $70,000, the expected net worth would be ($35 x $70,000) / 10 = $245,000. If your actual net worth is above that, you're an "accumulator of wealth." If it's below, you might be spending more than you realize.

This formula has its critics. It doesn't work well for very young people (a 22-year-old fresh out of college would need $15,400, which is unrealistic with student loans). But for people in their 30s and beyond, it's a useful gut check that ties your wealth to both your age and your earning history.

Why Tracking Net Worth Matters

Checking your net worth once is informative. Tracking it over time is transformative. Here's why:

• It's the real scorecard: Income is what you earn. Spending is what you consume. Net worth is what you keep. It's the most comprehensive single number for measuring financial progress.
• It captures the whole picture: Paying down debt increases your net worth. Saving money increases your net worth. Investment gains increase your net worth. It rewards all forms of financial progress, not just income growth.
• It exposes lifestyle creep: If your income goes up 20% but your net worth barely moves, you know your spending absorbed the raise. Tracking net worth keeps you honest.
• It's motivating: Watching your net worth climb from negative to zero, then from zero to $10,000, then $50,000, then $100,000 is genuinely exciting. Each milestone feels earned because it is.
• It helps with big decisions: Should you buy a house? Take a lower-paying job you love? Retire early? Your net worth trajectory gives you the context to decide with confidence.

How Often Should You Check?

Monthly is ideal for most people. It's frequent enough to notice trends and catch problems, but not so frequent that daily market fluctuations stress you out. Some people prefer quarterly, which is fine too. The important thing is consistency. Pick a schedule and stick with it.

Many people track their net worth using a simple spreadsheet. Others use apps like Personal Capital (now Empower), Mint, or YNAB. The tool doesn't matter as long as you're updating it regularly and being honest with the numbers.

Common Pitfalls in Calculating Net Worth

• Overvaluing your home: Use a realistic estimate based on recent comparable sales, not your Zillow "Zestimate" on its best day. And remember, selling a home costs 5-6% in agent commissions and fees, so your accessible equity is lower than the market value minus mortgage balance.
• Overvaluing personal property: Your furniture, electronics, and clothing have very little resale value. Most financial planners exclude personal property from net worth calculations entirely.
• Ignoring retirement account taxes: Your 401(k) balance is listed as an asset, but when you withdraw it, you'll owe income tax on every dollar. Some people calculate "after-tax net worth" by discounting traditional retirement accounts by their expected tax rate.
• Forgetting liabilities: It's easy to list your savings and investments but forget about that remaining car loan or the balance on a 0% APR credit card. Include everything.

The Bottom Line

Your net worth is the most honest measure of your financial health. It doesn't care about your job title, your salary, or what car you drive. It only cares about what you've actually kept. Start by calculating yours today using the tool above. Then commit to tracking it every month. You might be surprised at where you stand, either pleasantly or as a wake-up call. Either way, you'll have a clear starting point and a number to beat next month. Over time, watching that number grow becomes one of the most satisfying things in personal finance.