How to calculate net worth
Net worth is everything you own minus everything you owe. If your assets add up to 180,000 and your debts to 65,000, your net worth is 115,000.
Use today’s market value, not what you paid. A car bought for 30,000 might sell for 18,000 now; 18,000 is the number that belongs here.
A negative result is common early in a career, especially with a student loan or a new mortgage. It tells you where you start, not where you will end up.
What counts as an asset or a liability?
Assets: cash, investments, pension savings, property at market value, gold and other valuables you could sell, crypto, and vehicles at resale value.
Liabilities: the remaining balance on your mortgage, car loan, student loan, credit cards and any money you owe to people or companies.
Leave out: future salary, items you would never sell (clothes, everyday furniture) and money people owe you unless you expect to get it back.
Common questions
Should I include my home?
Yes, at a realistic market value, with the mortgage listed as a liability. Many people also track a second number without the home to see how much is liquid.
What about my pension?
Include what is already saved in pension or retirement accounts. Leave out future state pension payments; they are income, not an asset you hold today.
How often should I calculate it?
Once a month or once a quarter is enough for most people. Daily changes are mostly market noise.