Net Worth Calculator
This net worth calculator helps you determine your financial position by tracking your assets and liabilities. Enter your assets (what you own) and liabilities (what you owe) to calculate your total net worth.
How the Net Worth Calculator Works
The net worth calculator uses the following formulas to determine your financial position:
1. Calculate Total Assets
First, we add up all your assets (what you own):
Total Assets = Cash + Investments + Real Estate + Personal Property
2. Calculate Total Liabilities
Next, we add up all your liabilities (what you owe):
Total Liabilities = Mortgages + Loans + Consumer Debt
3. Calculate Net Worth
Your net worth is the difference between your assets and liabilities:
Net Worth = Total Assets - Total Liabilities
4. Calculate Debt-to-Asset Ratio
This ratio helps you understand how leveraged you are:
Debt-to-Asset Ratio = (Total Liabilities ÷ Total Assets) × 100%
Why Calculate Your Net Worth?
Tracking your net worth over time provides several benefits:
- Gives you a clear picture of your overall financial health
- Helps you track progress toward financial goals
- Identifies areas where you can reduce debt or increase assets
- Provides motivation as you see your net worth grow over time
- Helps with retirement planning and estate planning
Tips for Improving Your Net Worth
- Pay down high-interest debt first
- Increase your savings rate
- Invest regularly for long-term growth
- Minimize unnecessary expenses
- Increase your income through career advancement or side hustles
- Regularly review and update your net worth calculation