Net Worth Calculator

Net worth is the simplest and most powerful measure of your financial health. It's calculated as: **Net Worth = Total Assets − Total Liabilities**. Assets are everything you own (cash, investments, retirement accounts, real estate, vehicles). Liabilities are everything you owe (mortgages, loans, credit card balances).

Net worth is more meaningful than income for measuring wealth. Someone earning $200,000/year but spending $210,000 has negative net worth and is getting poorer every year. Someone earning $80,000/year and saving $20,000 is building real wealth. Income is a flow; net worth is the accumulated stock of wealth.

Tracking your net worth over time reveals the true trajectory of your financial life. Rising net worth means you're building wealth. Flat net worth means you're treading water. Falling net worth means you're consuming more than you're earning — a path that leads to financial fragility.

**Assets (what you own):** Cash and savings accounts, investment accounts (brokerage, mutual funds), retirement accounts (401k, IRA, PPF, NPS), real estate (at fair market value), vehicles (at resale value, not purchase price), business interests, valuable personal property (art, jewellery), and any other appreciating or liquid holdings.

**Liabilities (what you owe):** Mortgage balance, car loans, student loans, credit card balances, personal loans, medical debt, tax owed, and any other outstanding obligations. Use the current outstanding balance, not the original loan amount.

The distinction matters: an $80,000 car that's fully paid off contributes $80,000 to your net worth, but only at resale value — perhaps $50,000 after depreciation. A mortgage is a liability until it's paid off, so the home's value minus mortgage balance is your net equity in the property.

There's no universal 'correct' net worth for any age, but a common rule of thumb is: **Target Net Worth = (Age × Annual Pre-Tax Income) / 10**. At age 30 earning $60,000, the target is $180,000. At age 45 earning $120,000, the target is $540,000. At age 60 earning $150,000, the target is $900,000.

Another way to benchmark: **net worth should be roughly 1x annual income by age 30, 3x by 40, 6x by 50, and 8x by 60.** This aligns with typical salary growth and compounding of retirement and investment accounts.

Being behind these benchmarks isn't a crisis — many factors affect net worth (having children, living in a high-cost city, taking career breaks). What matters is that your net worth trends upward over time. A negative net worth at 30 due to student loans can become a positive one by 40 with consistent saving.