The one number that summarizes your finances
Net worth = everything you own − everything you owe. Income is how fast money flows through your life; net worth is what has accumulated. High earners can have negative net worth (big lifestyle, bigger debts) and modest earners can be quietly wealthy. This calculator builds your personal balance sheet from the standard categories and adds two diagnostics: your debt-to-asset ratio and your liquid net worth (the part you could reach quickly).
How to value things honestly
Home: a conservative estimate of current market value (a quick look at recent nearby sales beats an optimistic guess). Vehicles: private-party resale value, not replacement cost. Investments and retirement accounts: today's balances. Skip household items, clothing and anything you would not realistically sell — inflating assets makes the number comforting and useless.
Reading your result
- Negative net worth is common early in life — student loans arrive before assets do. The trend matters more than the level.
- Debt-to-asset ratio under ~30% is comfortable for most households; above 50%, debt service is likely crowding out saving.
- Liquid net worth (cash + investments − revolving debt) shows your resilience: home equity does not pay for a job loss.
- Benchmarks are rough: a common rule suggests net worth near 1× salary by 30, 3× by 40, 6× by 50 — treat as orientation, not a report card.
Worked example
A household owns $8,000 in cash, $45,000 of investments, a $380,000 home, $22,000 of vehicles and $5,000 of other assets: $460,000 total. They owe $265,000 on the mortgage, $14,000 on a car, $4,500 on cards and $18,000 of student loans: $301,500 total. Net worth = $460,000 − $301,500 = $158,500, with a debt-to-asset ratio of 65.5% — normal for a mortgaged household, and a clear target: every $10,000 of principal paid down cuts the ratio noticeably.
How to use this calculator
- List assets at current selling values — bank balances, investments, home, vehicles, other.
- List every debt balance — mortgage, auto, cards, student loans, other.
- Read net worth, then the debt-to-asset ratio and liquid net worth for the fuller picture.
- Save the numbers somewhere and repeat in 6–12 months — the change is the real report.
- Pick one lever (a debt to kill, a contribution to raise) and run the Debt Payoff or Retirement calculator to plan it.
Growing net worth: only three levers exist
Increase assets (save and invest more), decrease debts (pay principal), or benefit from appreciation (home and market growth you do not control). Everything marketed as a shortcut is one of these three in a costume. The boring mathematics of this page, repeated yearly, is how households get wealthy.