How to Calculate Your Net Worth in 10 Minutes (And Why the Number Matters)

Net worth = total assets minus total liabilities. That is the entire formula. Everything you own that has monetary value, minus everything you owe. The resulting number — positive or negative — is a snapshot of your financial position at this moment. Track it quarterly and the trend line tells you more about your financial health than income, spending, or any other single metric.

How to Calculate It

Assets (add these up): checking and savings accounts, investment accounts (brokerage, 401k, IRA), home market value (Zillow or recent comparable sales, not what you paid), car value (Kelly Blue Book), other property, cash value of life insurance, business equity, valuable personal property (jewelry, art — be conservative). Liabilities (add these up): mortgage balance, car loans, student loans, credit card balances, personal loans, medical debt, any other debt.

Subtract liabilities from assets. The result is your net worth. For the median American household under 35, this number is approximately $40,000. For 35-44, about $135,000. For 45-54, about $250,000. If you are above the median for your age group, you are doing better than most. If you are below, you know exactly how far you need to go — which is more useful than vague anxiety about money.

Why Net Worth Beats Income as a Metric

A doctor earning $350,000 per year with $400,000 in student loans, a $500,000 mortgage, two car payments, and credit card debt might have a net worth of negative $200,000. A teacher earning $55,000 with a paid-off house worth $250,000, no debt, and $150,000 in retirement accounts has a net worth of $400,000. The teacher is wealthier despite earning one-sixth the income. Net worth measures accumulated wealth. Income measures the speed of money flowing through — and flow without retention builds nothing.

Calculate yours in 2 minutes with our net worth calculator, then see how you compare to peers your age with our net worth percentile tool.