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Your net worth is a single number that shows where you stand financially. It is simple to calculate. And tracking it over time is one of the clearest signals of whether your finances are moving in the right direction.
Rates and figures as of May 2026.
The Net Worth Formula
Net Worth = Total Assets – Total Liabilities
Assets are everything you own that has value. Liabilities are everything you owe. The difference is your net worth.
Net worth can be negative. Many people start their financial lives with negative net worth (usually due to student loans) and gradually build it up over time.
Step 1: List Your Assets
Write down everything you own with a dollar value. Include:
| Asset Type | Examples |
|---|---|
| Cash and savings | Checking, savings, CDs, money market accounts |
| Investments | 401(k), IRA, brokerage account, stocks, ETFs |
| Real estate | Current market value of your home or rental properties |
| Vehicles | Kelley Blue Book value of your car, truck, or boat |
| Business interests | Ownership stake in a business you own |
| Other | Collectibles, jewelry (at resale value), life insurance cash value |
Use current market values, not what you paid. Your home is worth what you could sell it for today, not what you paid 5 years ago.
Step 2: List Your Liabilities
Write down every debt balance you owe:
| Liability Type | Examples |
|---|---|
| Mortgage | Remaining balance on your home loan |
| Auto loans | Current payoff balance on car loans |
| Student loans | Total federal and private loan balances |
| Credit card debt | Total balances across all cards |
| Personal loans | Outstanding balances |
| Other | Medical debt, HELOC balance, family loans |
Step 3: Calculate the Difference
Subtract total liabilities from total assets. That number is your net worth.
Example:
Assets: $320,000 (home $280,000 + retirement accounts $35,000 + savings $5,000)
Liabilities: $210,000 (mortgage $195,000 + student loans $12,000 + credit card $3,000)
Net Worth: $320,000 – $210,000 = $110,000
What Is a Good Net Worth?
Net worth varies enormously by age and income. The Federal Reserve’s Survey of Consumer Finances provides benchmarks:
| Age Group | Median Net Worth | Mean Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,000 |
| 35–44 | $135,000 | $549,000 |
| 45–54 | $247,000 | $975,000 |
| 55–64 | $364,000 | $1,567,000 |
| 65–74 | $409,000 | $1,794,000 |
Median is more useful than mean here — a small number of very high net worth individuals inflate the average significantly.
How Often Should You Calculate Your Net Worth?
Once a year is the minimum. Once a quarter is better. Many people use a simple spreadsheet and update it when they get account statements. Personal finance apps like Personal Capital (now Empower) and Mint can link your accounts and update it automatically.
How to Increase Your Net Worth
There are only two levers:
- Increase assets: Save more, invest more, grow your home equity
- Decrease liabilities: Pay off debt, especially high-rate debt first
Both matter. But for most people in their 20s and 30s, aggressively paying down high-interest debt and maximizing retirement contributions moves the needle fastest.
The Bottom Line
Your net worth is a scoreboard for your financial life. Calculate it today, write it down, and check it again in 90 days. Tracking the number — even roughly — creates accountability and makes it easier to see that slow, boring financial decisions are actually working.