Net Worth Calculator

A Snapshot of Your Financial Health

Your net worth is a key indicator of your overall financial position. It's the value of everything you own minus everything you owe. This calculator helps you determine your net worth by guiding you to list your assets and liabilities.

The Net Worth Formula Explained

The formula is straightforward: Net Worth = Total Assets - Total Liabilities

• Assets: Everything you own that has monetary value. This includes cash, savings accounts, investments (stocks, 401k), real estate, and valuable personal property (like cars).
• Liabilities: Everything you owe. This includes credit card debt, mortgages, auto loans, student loans, and any other personal loans.

How to Use the Calculator

1. List Assets: In the 'Assets' section, list your valuable possessions and their current market value.
2. List Liabilities: In the 'Liabilities' section, list all your debts and their outstanding balances.
3. Add/Remove Items: Use the Add Item and X buttons to customize the lists.
4. Calculate Net Worth: The calculator will sum your assets and liabilities and display your total net worth.

Real-World Example

• Assets: Savings Account ($10,000), 401(k) ($50,000), Car Value ($15,000) = $75,000
• Liabilities: Student Loan ($20,000), Car Loan ($8,000), Credit Card Debt ($2,000) = $30,000
• Net Worth: $75,000 - $30,000 = $45,000

Frequently Asked Questions (FAQ)

• Can my net worth be negative? Yes. If your total liabilities are greater than your total assets, you have a negative net worth. This is common for recent graduates with significant student loan debt but few assets.
• How often should I calculate my net worth? Calculating your net worth once a year is a good practice to track your financial progress over time.
• How do I value my property like a car or house? For a car, you can use sites like Kelley Blue Book (KBB). For a house, you can use real estate websites like Zillow for an estimate (Zestimate), or a professional appraisal for a more accurate figure.