Your financial starting position in one number. Assets minus liabilities, plus monthly cash flow and savings rate.
Your net worth is the single most important number in personal finance. It tells you where you actually stand, not where your income or job title suggests you stand. Two people earning the same salary can have wildly different net worth figures depending on how they save, spend, and invest.
This calculator adds up everything you own, subtracts everything you owe, and gives you the number. It also calculates your monthly savings rate, which tells you how fast that number is growing. Use it as a baseline, then come back monthly to track your trajectory.
Your net worth is positive when assets exceed liabilities and negative when debts outweigh what you own. A negative net worth is not unusual for people in their 20s who carry student loans, but the trajectory matters more than the snapshot. If the number is moving up each month, you are on the right track regardless of where you start.
Your savings rate is the percentage of after-tax income left over after expenses. This is the engine that drives net worth growth. A high savings rate accelerates your progress; a negative savings rate means you are falling behind every month.
These targets use the formula from The Millionaire Next Door: age multiplied by pre-tax income, divided by 10. They assume consistent saving and investing over time.
Your car is not worth what you paid for it. Use current resale value, not original price. The same applies to electronics, furniture, and other personal property. Most people overcount assets by 10-20% by using purchase prices instead of market values.
Your 401(k), IRA, and HSA balances absolutely count toward net worth. These are real assets you own, even if you cannot access them penalty-free until retirement age. Excluding them dramatically understates your true position.
If you sold all your investments today, you would owe capital gains tax on the profits. Your true liquid net worth is somewhat lower than the headline number if most of your wealth is in taxable brokerage accounts with large unrealized gains.
A single calculation is a snapshot. The real value comes from tracking over time. Set a recurring monthly reminder to update your numbers. The trend line matters more than any individual data point.
These free tools give you the snapshot. Our software, templates, and books give you the full system to build lasting financial health.