How to Calculate Net Worth
Net Worth = Total Assets − Total Liabilities
What Counts as an Asset?
- Liquid assets: Cash, checking, savings, money market accounts
- Investments: Stocks, bonds, mutual funds, ETFs, cryptocurrency
- Retirement: 401(k), IRA, pension, Roth IRA
- Property: Home value, rental properties, land
- Personal property: Vehicles, jewelry, collectibles
Frequently Asked Questions
What's a good net worth? It depends on age and income. A common benchmark is: your age × annual income ÷ 10. The median U.S. household net worth is about $192,900.
Can net worth be negative? Yes. If you owe more than you own, your net worth is negative. This is common early in life with student loans or mortgages.