How to calculate net worth
Assets — what you own
- Cash in checking and savings
- Retirement and investment accounts
- Home value (at a realistic market price)
- Car value (resale, not purchase price)
Liabilities — what you owe
- Mortgage balance
- Car loans, student loans, personal loans
- Credit card balances
- Medical and other debts
Example
| Assets | Liabilities | ||
|---|---|---|---|
| Checking & savings | $8,000 | Student loans | $18,500 |
| 401(k) | $22,000 | Car loan | $11,800 |
| Car | $14,000 | Credit cards | $3,200 |
| Total | $44,000 | Total | $33,500 |
Net worth = $44,000 − $33,500 = $10,500.
How to grow your net worth
Every dollar of debt you pay off and every dollar you save raises net worth by the same amount. Paying high-interest debt first — the debt avalanche — and letting savings grow with compound interest are the two strongest levers. The debt payoff calculator shows how fast your liabilities can shrink.
Frequently asked questions
Can net worth be negative?
Yes, and it is common early in adult life, especially with student loans. What matters most is the direction: a negative number that grows less negative each month is real progress.
Should I include my car in my net worth?
Yes, at a realistic resale value — and include the car loan as a liability. Cars lose value, so update the value from time to time.
How often should I track net worth?
Monthly or quarterly is plenty. Day-to-day changes in investments are noise; the trend over months and years is what counts.
Written by
Finance Specialist & Editor, VaultlyApps
Researched against primary US sources and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
