Net Worth Calculator
Income tells you what you earn. Net worth tells you what you're keeping. Enter what you own and what you owe to see exactly where you stand today.
This free calculator is from The Budget Ledger, practical money guidance for everyday budgets and real-life planning.
What net worth actually tells you
Your net worth is everything you own (assets) minus everything you owe (liabilities). It's the truest scorecard in personal finance because, unlike income, it can't be faked by spending. Two people earning the same salary can have wildly different net worths, the difference is what they keep, not what they make.
What counts as an asset, and what counts as a liability
Assets are everything you own that has real cash value: checking and savings balances, investment and retirement accounts, the resale value of your home and car, and any cash on hand. Use what something would actually sell for today, not what you paid for it. Liabilities are everything you owe: your mortgage, car loan, student loans, personal loans, and credit-card balances. Add up each side, subtract liabilities from assets, and the result is your net worth, which the calculator above totals for you.
How to grow your net worth
- Pay down high-interest debt first, it shrinks the liabilities side fast.
- Invest consistently so your assets compound over time.
- Avoid lifestyle inflation; a raise should grow your net worth, not just your spending.
- Recalculate every few months. Watching the number climb is genuinely motivating.
What is a good net worth by age?
There is no single right number, but a widely used rule of thumb is a net worth roughly equal to your annual income by age 30, about three times your income by 40, and six to eight times by retirement. These targets swing a lot based on your city, whether you own a home, student debt, and when you started investing, so treat them as guideposts rather than grades. The trajectory matters far more than any single snapshot: a number climbing year over year means your system is working.
For the full method, worked examples, and how the number changes by decade, read how to calculate your net worth and budgeting by age.
Don't panic if your net worth is negative right now, that's common with student loans or a new mortgage. What matters is the direction it's heading.
Frequently asked questions
How do I calculate my net worth?
Net worth is what you own minus what you owe. Add up all your assets (cash, savings, investments, retirement accounts, home value, and car), then subtract all your liabilities (mortgage, car loan, student loans, and credit card balances). The result is your net worth, and the calculator above totals it for you.
What is the net worth formula?
The formula is simply Assets minus Liabilities equals Net Worth. Assets are everything of value you own; liabilities are everything you owe. If you own $80,000 in assets and owe $50,000, your net worth is $30,000.
What is a good net worth by age?
A common rule of thumb is a net worth roughly equal to your annual income by age 30, about three times your income by 40, and six times by 50. These are rough targets that swing based on your city, whether you own a home, and your career; the trajectory matters more than the snapshot.
Is it bad to have a negative net worth?
Not necessarily. Negative net worth is common in your 20s and 30s because of student loans or a new mortgage. What matters is the direction it is heading. A net worth climbing from -$20,000 to $10,000 over a few years means your system is working, even if the number is still small.
Should I include my home and car in my net worth?
Yes. Include your home's current market value and your car's resale value as assets, and include the remaining mortgage and car loan as liabilities. Use realistic resale values, not what you paid, so the number reflects what you could actually convert to cash.
How often should I calculate my net worth?
Every three to six months is plenty. Checking too often makes normal market swings feel dramatic; checking a couple of times a year shows the real trend without the noise. Many people who build wealth track it quarterly alongside a quick budget review.