How it works
Net worth is simply everything you own (assets) minus everything you owe (debts). This adds up your cash, investments, real estate, and other assets, then subtracts your total debt to show where you actually stand financially right now.
Who this is for
Anyone who wants a single, honest number for their financial position — useful for tracking progress toward retirement, checking in annually, or getting a clear starting point before setting a savings goal.
Worked example
$20,000 in cash and savings, $250,000 in investments and retirement accounts, a $350,000 home, and $25,000 in other assets adds up to $645,000 in total assets. Subtracting $220,000 in debt (mortgage and other loans combined) leaves a net worth of $425,000.
Frequently asked questions
Should I use market value or purchase price for real estate? Use current market value — what the property would realistically sell for today, not what you paid for it.
Should I count my car? You can, at its current resale value, though many people exclude depreciating personal items like vehicles from their tracked net worth since they don't fund retirement.
How often should I recalculate this? Once or twice a year is plenty — net worth is a slow-moving number, and checking too often just adds noise from short-term market swings.
What's a 'good' net worth for my age? There's no universal target — it depends heavily on your income, cost of living, and retirement goals. Use the how much do you need to retire guide to work toward a specific number instead of comparing to others.