Net Worth Calculator
Net Worth Calculator
Easily Track Your Financial Health
In today’s world, financial clarity is more important than ever. Whether you’re managing personal finances or running a business, knowing your net worth is a crucial part of understanding your financial standing. With our Net Worth Calculator, you can quickly calculate your net worth, analyze your assets and liabilities, and plan confidently for your future.
From students starting their financial journey to business owners assessing company value, this guide will help you discover how to calculate net worth, use helpful tools like the net worth calculator app, and even create a net worth projection for the future.
What is Net Worth?
Net worth is the difference between what you own (assets) and what you owe (liabilities).
Formula:
Net Worth = Total Assets – Total Liabilities
It’s the most straightforward way to measure your personal or business financial health.
Why Use a Net Worth Calculator?
A net worth calculator saves time, reduces error, and gives you a clear picture of where you stand. Instead of manually writing down numbers, an automated calculator makes the process faster and more accurate.
✅ Benefits of a Net Worth Calculator:
- Fast and easy to use
- Helps track financial progress over time
- Encourages better money management
- Identifies areas for financial improvement
- Prepares you for big decisions (investments, loans, retirement)
How to Calculate Net Worth – Step by Step
Whether you’re using a net worth calculator app or doing it manually, here’s how to calculate:
🔹 1. List Your Assets
Assets include anything of value you own:
- Cash and bank balances
- Investments (stocks, bonds, mutual funds)
- Real estate (home, land)
- Vehicles
- Retirement accounts (401k, IRA)
- Business ownership
Example:
Savings: $10,000
House value: $150,000
Car: $15,000
Investments: $25,000
Total Assets = $200,000
🔹 2. List Your Liabilities
These are your financial obligations:
- Mortgage
- Student loans
- Credit card balances
- Car loans
- Business loans
Example:
Mortgage: $120,000
Car Loan: $8,000
Credit Cards: $5,000
Total Liabilities = $133,000
🔹 3. Subtract Liabilities from Assets
Net Worth = $200,000 – $133,000 = $67,000
Now you know your current net worth.
Tangible Net Worth Calculation
Sometimes you need to focus only on tangible assets, excluding non-physical items like intellectual property or goodwill. This is known as tangible net worth calculation.
✳️ Formula:
Tangible Net Worth = Total Tangible Assets – Total Liabilities
Tangible Assets Include:
- Property
- Equipment
- Inventory
- Cash
- Vehicles
This is especially important for businesses and lenders who need a realistic picture of financial stability.
How to Calculate Net Worth of a Business
If you’re a business owner or investor, knowing how to calculate the net worth of a business is critical.
➤ Follow These Steps:
- Calculate Total Assets (including tangible and intangible)
- Deduct All Liabilities (short-term and long-term)
- The result is the business’s net worth or shareholder equity
It reflects the value of the business if all debts were paid and assets liquidated.
Future Net Worth Calculator – Plan Ahead
A future net worth calculator helps you project your net worth based on expected income, investment growth, expenses, and liabilities over time.
🔮 Why Use It?
- Set realistic financial goals
- Estimate retirement readiness
- Visualize wealth-building progress
Many tools offer graphs and insights based on assumptions like inflation, savings rate, and return on investments.
Net Worth Calculator by Age – Where Do You Stand?
People often want to know if they’re on track compared to others their age. A net worth calculator by age compares your financial data with national averages.
📊 Average Net Worth by Age (Example – U.S.):
| Age Group | Average Net Worth |
|---|---|
| 20–30 years | $10,000 |
| 30–40 years | $75,000 |
| 40–50 years | $150,000 |
| 50–60 years | $250,000 |
| 60+ years | $350,000+ |
This comparison can motivate savings or help you adjust financial goals.
Top Net Worth Calculator Apps
Looking for tools on the go? Here are some of the best net worth calculator apps:
| App Name | Features | Platform |
|---|---|---|
| Mint | Tracks net worth, budgets, investments | iOS, Android |
| Personal Capital | Detailed net worth and retirement tracking | iOS, Android |
| YNAB (You Need A Budget) | Focus on budgeting and growth | iOS, Android |
| NerdWallet | Simple net worth estimation and tips | Web, Mobile |
These apps help you calculate your net worth anytime, anywhere.
Pros and Cons of Tracking Net Worth
✅ Pros:
- Clear financial picture
- Motivates saving and investing
- Helps avoid unnecessary debt
- Useful in planning for major life events
❌ Cons:
- Can fluctuate due to market changes
- May feel discouraging if in debt
- Requires regular updates for accuracy
Tips for Increasing Your Net Worth
- Pay off high-interest debt first
- Invest wisely in diversified portfolios
- Avoid lifestyle inflation
- Track expenses and save more
- Increase income through side hustles or skill-building
Related Tools (Internal Linking)
Explore other helpful financial tools on our website:
- 📅 Date Calculator – Plan important financial deadlines and timelines
- 💳 Debt Payoff Calculator – Strategize to become debt-free faster
- ➗ Decimal Calculator – Perform accurate decimal calculations
- 📏 How to Calculate Decimal to Fraction – Learn essential conversion methods
FAQs – People Also Ask
how to calculate net worth of a business
To calculate the net worth of a business, follow this simple formula:
Net Worth = Total Assets – Total Liabilities
This calculation gives you a clear picture of the financial health of a business. Here’s a breakdown:
how to calculate tangible net worth
To calculate tangible net worth, use the following formula:
Tangible Net Worth = Total Assets – Intangible Assets – Total Liabilities
Here’s how to do it step-by-step:
List Total Assets: Include all physical and financial assets such as cash, accounts receivable, inventory, equipment, and property.
Subtract Intangible Assets: These include goodwill, patents, trademarks, copyrights, and any non-physical assets.
Deduct Total Liabilities: These are all the company’s debts and obligations like loans, accounts payable, and mortgages.
how to calculate pension into net worth
To include a pension in your net worth, calculate its present value using this formula:
Pension Value = Annual Pension * [1 – (1 + r) ^ (- n)] / r
Annual Pension = yearly amount you’ll receive
r = discount rate (e.g. 5%)
n = number of years you’ll receive the pension
Add this pension value to your assets, then subtract liabilities to get your total net worth.
how to calculate net worth for fafsa
To calculate your net worth for FAFSA (Free Application for Federal Student Aid), subtract the total value of your assets from your debts. This includes the net worth of investments and businesses/farms (if applicable), but excludes the value of your primary residence, retirement accounts, and personal possessions.
Here’s a step-by-step breakdown:
Include these assets:
Cash, savings, and checking account balances
Real estate (excluding your primary home)
Trust funds
Stocks, bonds, certificates of deposit (CDs), mutual funds
529 college savings plans
Business and investment farm equity (if not family-owned and operated)
Exclude these from net worth:
Primary home equity
Retirement accounts (e.g., 401(k), IRA, pension)
Life insurance policies
Vehicles and household items
Subtract any debts tied to those assets, like a mortgage on a second property or a loan on a business.
Formula:
📌 Net Worth = Total Included Assets – Related Debts
Example:
If you own stocks worth $10,000 and a second property valued at $50,000 with a $20,000 loan on it, your FAFSA net worth is:
👉 $10,000 + $50,000 – $20,000 = $40,000
how is net worth calculated
Net worth is calculated by subtracting your total liabilities (debts) from your total assets (what you own). The formula is:
Net Worth = Total Assets – Total Liabilities
Assets may include cash, savings, investments, real estate, vehicles, retirement accounts, and valuable personal items.
Liabilities include credit card debt, mortgages, personal loans, student loans, and any other outstanding financial obligations.
For example, if your assets total $500,000 and your liabilities total $200,000, your net worth is:
$500,000 – $200,000 = $300,000
Understanding your net worth helps you measure your overall financial health and plan better for the future.
how do you calculate net worth of a business
To calculate the net worth of a business, use the following formula:
Net Worth = Total Assets – Total Liabilities
Here’s how it works:
Total Assets include everything the business owns (cash, inventory, equipment, property, investments, accounts receivable).
Total Liabilities are what the business owes (loans, debts, accounts payable, accrued expenses).
For example:
If a business owns $500,000 in assets and owes $200,000 in liabilities, the net worth would be:
$500,000 – $200,000 = $300,000 (Net Worth)
how to calculate liquid net worth
To calculate your liquid net worth, subtract your total liabilities (debts) from your total liquid assets. Liquid assets are those that can quickly and easily be converted to cash without losing value, such as cash, checking and savings accounts, stocks, bonds, and money market funds.
Formula:
Liquid Net Worth = Total Liquid Assets − Total Liabilities
Steps to Calculate:
List your liquid assets:
Cash on hand
Bank account balances
Stocks and mutual funds
Bonds and Treasury bills
Cryptocurrency (if easily sellable)
Exclude non-liquid assets:
Real estate
Cars
Jewelry
Retirement accounts with penalties
Business ownership
Add up all your liabilities:
Credit card debt
Personal loans
Auto loans
Mortgage balance
Student loans
Subtract liabilities from your liquid assets.
The result is your liquid net worth, which gives you a clear picture of your readily available financial health.
✅ Example:
If you have $50,000 in liquid assets and $20,000 in liabilities:
Liquid Net Worth = $50,000 − $20,000 = $30,000
how to calculate a company’s net worth
To calculate a company’s net worth, subtract its total liabilities from its total assets. This formula is:
Net Worth = Total Assets – Total Liabilities
Here’s a step-by-step breakdown:
List all assets: Include both current assets (cash, inventory, accounts receivable) and non-current assets (equipment, buildings, intellectual property).
Calculate total liabilities: Include all current liabilities (accounts payable, short-term loans) and long-term liabilities (mortgages, bonds, deferred taxes).
Apply the formula: Subtract liabilities from assets.
✅ Example:
If a company has total assets worth $5 million and liabilities of $3 million:
Net Worth = $5,000,000 – $3,000,000 = $2,000,000
This net worth (also known as shareholders’ equity) reflects the company’s financial health and value.