What counts as an asset when calculating net worth?

Anything you own that could be turned into cash: current and savings accounts, taxable investments, retirement accounts, the market value of property you own, vehicles, and valuables such as jewellery or collectibles. Value each at what it would realistically sell for today, not what you paid. Leave out salary, which is a flow of income rather than a stored asset.

Should I include my home and mortgage in my net worth?

Yes, include both. The home's market value is an asset and the outstanding mortgage is a liability, so only the equity between them adds to net worth. Counting the mortgage while ignoring the house would understate you badly. Keep the valuation honest, and remember selling costs usually take five to ten percent of the sale price.

What is a good net worth for my age?

There is no single right figure, because it depends on income, cost of living and how long you have been earning. A widely quoted rule of thumb multiplies your age by your annual pre-tax income and divides by ten. It flatters older high earners and is harsh on young workers, so treat it as a rough marker rather than a verdict.

What is the difference between net worth and liquid net worth?

Net worth counts everything you own, including property and retirement accounts you cannot easily touch. Liquid net worth counts only assets you could convert to cash quickly, such as bank balances and taxable investments, less the debt you owe. It is the better measure of whether you could absorb a sudden job loss or a large unexpected bill.

Net Worth Calculator

Add up everything you own, subtract everything you owe, and see exactly where you stand today and where your current habits are taking you.

One Number That Sums Up Your Finances

Income tells you what came in this month. Net worth tells you what you have actually kept. Enter today's values below, then watch the direction the number moves each time you come back.

What You Own (Assets)

Cash & Savings ($) Current accounts, savings, cash ISAs, money market funds

Investments ($) Taxable brokerage, shares, funds, crypto — current market value

Retirement Accounts ($) 401(k), IRA, pension pot, provident fund balances

Property Value ($) What your home and any other property would sell for today

Vehicles ($) Resale value, not the price you paid

Other Assets ($) Business equity, jewellery, collectibles, money owed to you

What You Owe (Liabilities)

Mortgage Balance ($) Outstanding principal, not the original loan amount

Car Loans ($) Settlement figure on any vehicle finance

Student Loans ($) Total balance across all education debt

Credit Cards ($) Balance carried, including any interest-free promotional debt

Personal Loans ($) Unsecured loans, overdrafts, buy-now-pay-later balances

Other Liabilities ($) Tax owed, medical bills, money owed to family

Trend Assumptions

Net Saving Per Year ($) What you add to assets or take off debt in a year. Negative if you are drawing down

Expected Annual Growth (%) Blended return across everything you own. Use a real (after-inflation) rate for today's money

Years to Project Length of the projection table below

Benchmark & Debt Thresholds

Your Age (years) Used for the age-and-income benchmark

Annual Pre-Tax Income ($) Household gross income before tax and deductions

Wealth Formula Divisor Benchmark = age × income ÷ divisor. 10 is the classic figure; raise it for a gentler target, set 0 to switch the benchmark off

Healthy Debt-to-Asset Limit (%) Below this counts as comfortable. There is no legal threshold — lenders use their own

Elevated Debt-to-Asset Limit (%) Above this counts as stretched. Adjust both bands to match your own risk tolerance

Your Net Worth Position

Net Worth

Total assets minus total liabilities

Total Assets

Everything you own, at today's value

Total Liabilities

Everything you still owe

Debt-to-Asset Ratio

Share of your assets funded by debt

Projected Net Worth

On your saving and growth assumptions

Assets — What You Own

Cash & savings $0

Investments $0

Retirement accounts $0

Property $0

Vehicles $0

Other assets $0

                    Total assets
                    $0
                

Asset Mix

Cash 0% Investments 0% Retirement 0% Property 0% Vehicles 0% Other 0%

Liabilities — What You Owe

Mortgage $0

Car loans $0

Student loans $0

Credit cards $0

Personal loans $0

Other liabilities $0

                    Total liabilities
                    $0
                

Liquidity & Benchmark

Liquid assets (cash + investments) $0

Consumer debt (cards, personal, car) $0

                    Liquid net worth
                    $0
                

Investable assets (cash, investments, retirement) $0

Share of assets that is investable 0%

Assets per $1 of debt —

Benchmark net worth for your age $0

Gap versus benchmark $0

How Much of Your Balance Sheet Is Borrowed

Liabilities as a share of assets 0%

Where you stand

Net Worth Projection

Year	Age	Opening	Net Saving	Growth	Closing Net Worth
Totals	—	—	$0	$0	$0

Growth is applied to the opening balance at the start of each year and your net saving is added at the end of it. No growth is credited to a negative opening balance, so a shortfall is closed only by what you save.

Age Milestones Against the Wealth Benchmark

At Age	Benchmark Net Worth	Projected Net Worth	Gap	Status

The Arithmetic

Net worth = total assets − total liabilities

Debt-to-asset ratio = total liabilities ÷ total assets × 100

Assumptions Behind These Figures

Assets are entered at today's market value, not purchase price. Net worth is a gross figure: no tax is deducted from retirement accounts or from unrealised investment gains, and no selling costs are removed from the property value, so the amount you could actually walk away with is lower. Liquid net worth here subtracts only consumer debt — credit cards, personal loans and car finance — from your cash and investments, because a mortgage is secured against an asset already counted above and is repaid on a schedule rather than on demand. A stricter definition subtracts every liability, which on your figures would give $0. The projection uses a single steady growth rate with no market volatility and no inflation adjustment, so enter a real after-inflation rate if you want the result in today's money. The benchmark is the rule of thumb popularised by The Millionaire Next Door: age × pre-tax income ÷ 10. It is a marker for mid-career earners, not a target, and both the divisor and the debt bands above are editable so you can set thresholds that match your own situation. Verify balances with your providers before acting on anything here.

Understanding Net Worth

What Belongs on Each Side

The test for an asset is simple: could you sell it or spend it? The test for a liability is whether someone can demand the money back.

Include: bank balances, investments, pensions, property, vehicles, business equity
Exclude: your salary — that is a flow, and it shows up as net worth only once you have saved some of it
Exclude: an expected inheritance or a bonus not yet paid
Value at resale: a car bought for $35,000 three years ago may be worth $18,000 today, and that is the honest number

Why the Trend Beats the Number

A single net worth figure says almost nothing on its own. Two people with $200,000 are in completely different positions if one is climbing $30,000 a year and the other is falling $10,000.

Record the same figure on the same date each quarter, using the same valuation method
A rising trend through a falling market usually means your saving rate is doing the work
Expect a dip after a house purchase, a car purchase or a market correction — the slope over years is the signal
The change year to year is roughly what you saved plus what your assets earned, so a flat line means one of the two is missing

Reading the Debt-to-Asset Ratio

The ratio shows how much of your balance sheet belongs to lenders. It matters less than what the debt is buying and what it costs.

A high ratio from a recent mortgage on an appreciating home is normal and falls every month you pay it down
The same ratio built from credit cards at 20% and car finance on a depreciating vehicle is a different problem
Above 100% you are insolvent on paper: liabilities exceed everything you own
Lenders look at your debt-to-income ratio alongside this, because a balance sheet does not show whether you can make the payments

Common Ways People Overstate It

Purchase-price valuations: cars, furniture and electronics fall in value; homes do not always rise
Ignoring embedded tax: a $110,000 traditional retirement balance is worth meaningfully less after the income tax due on withdrawal
Forgetting transaction costs: agent fees, legal fees and transfer taxes take a real slice of any property sale
Omitting quiet debts: tax owed, buy-now-pay-later balances, an overdraft and money borrowed from family all count
Counting a business at a hoped-for price: use a figure a buyer would actually pay today