How to Calculate Your Net Worth (and Why It's Worth Tracking)
· 1 min read · Currency & Savings
Net worth is a more honest measure of financial progress than income — a high salary with high debt can leave you worse off than a modest salary with real savings.
Calculate your net worth
Add your assets and liabilities to see where you stand.
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The formula
Net worth is simply total assets − total liabilities. Assets include cash, investments, property value, and other valuables. Liabilities include mortgage balances, loans, and credit card debt.
Why tracking it over time matters more than a single snapshot
A single net worth number matters less than the trend — checking it every few months shows whether your financial decisions are actually moving you forward, independent of how much you earn.
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Frequently asked questions
Should I include my car in net worth?
Yes, at its current resale value — though cars depreciate quickly, so update the value periodically rather than using the original purchase price.
Don't miss it: Calculate your net worth
Use our free tool and get your answer with real numbers.
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