Net Worth

Personal Finance
Updated Apr 2026 • Has calculator

Total assets minus total liabilities — the most fundamental measure of personal financial health.

What is Net Worth?

Net worth is the difference between everything you own (assets) and everything you owe (liabilities). Assets include cash, investments, real estate, vehicles, and retirement accounts. Liabilities include mortgages, car loans, student debt, credit card balances, and any other obligations. A positive net worth means assets exceed debts; a negative net worth (common early in life due to student loans) means debts exceed assets. Tracking net worth regularly is the foundation of personal financial planning.

Formula

Net Worth = Total Assets − Total Liabilities

Worked Example

Worked example — US median household — 2022 Federal Reserve Survey

2022

Step 1  Assets: Home $320,000 + 401(k) $95,000 + Cash $18,000 + Car $25,000
Step 2  Total assets: $458,000
Step 3  Liabilities: Mortgage $215,000 + Car loan $12,000 + Student loans $8,000
Step 4  Total liabilities: $235,000
Step 5  Net worth = $458,000 − $235,000 = $223,000
Step 6  → US median household net worth: $192,700 (Fed SCF 2022)

Source: Federal Reserve — Survey of Consumer Finances 2022 (2023-10-18)

Calculate Net Worth

Cash + investments + retirement accounts + home value + car value

Mortgage + car loans + student loans + credit card balances

Net Worth

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Not investment advice.

How to Interpret Net Worth

< 0
Negative net worth — debt exceeds assets
0 – 50000
Building stage — positive but early in the journey
50000 – 500000
Growing — on track for most milestone targets
> 500000
Substantial — approaching or beyond financial freedom

📚 Personal Finance Basics — Complete the path

  1. Net Worth
  2. Emergency Fund
  3. Savings Rate
  4. CAGR
  5. Rule of 72
Sources
  1. Federal Reserve — Survey of Consumer Finances 2022
  2. Investopedia — Net Worth