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Your net worth is one of the best measures of financial health. It is simple to calculate. And tracking it over time shows you if you are moving in the right direction.
This guide explains how to calculate your net worth, what it means, and how to grow it.
Data as of May 2026.
What Is Net Worth?
Net worth = Assets minus Liabilities.
Assets are things you own that have value. Liabilities are debts you owe. If your assets are worth more than your debts, you have a positive net worth. If you owe more than you own, it is negative.
What Counts as an Asset?
- Cash and bank account balances
- Investment and retirement accounts (401k, IRA, brokerage)
- Home value (current market value)
- Car value
- Other property you own
- Business ownership stakes
What Counts as a Liability?
- Mortgage balance remaining
- Car loan balance
- Credit card debt
- Student loan balance
- Personal loan balance
- Any other debt you owe
Net Worth Calculator Example
| Category | Item | Value |
|---|---|---|
| Asset | Checking account | $3,000 |
| Asset | Savings account | $12,000 |
| Asset | 401(k) | $45,000 |
| Asset | Home value | $280,000 |
| Asset | Car value | $18,000 |
| Total Assets | $358,000 | |
| Liability | Mortgage balance | $210,000 |
| Liability | Car loan | $9,000 |
| Liability | Credit card debt | $2,500 |
| Total Liabilities | $221,500 | |
| Net Worth | $136,500 |
Average Net Worth by Age in the US (Federal Reserve Data, 2026)
| 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 | $1,566,000 |
| 65–74 | $409,000 | $1,794,000 |
| 75+ | $335,000 | $1,624,000 |
The median is a better measure than the mean. The mean is skewed high by very wealthy households.
Best Free Tools to Track Net Worth
- Empower (formerly Personal Capital): Connects your accounts. Shows net worth in real time. Free to use.
- Mint: Budget and net worth tracker. Easy to use. Free.
- YNAB (You Need a Budget): Focused on budgeting, but also tracks net worth. Paid, but highly rated.
- A simple spreadsheet: List your assets and liabilities. Update it monthly. Sometimes simple is best.
How to Grow Your Net Worth
- Build an emergency fund so you do not go into debt during a crisis. See how much you need in our emergency fund guide for 2026.
- Pay down high-interest debt first. Credit card debt at 20%+ APR destroys wealth fast.
- Contribute to your 401(k) and IRA. Tax-advantaged accounts are one of the fastest ways to grow wealth.
- Use the 50/30/20 budget rule to make sure you are always saving a portion of income.
- Consider opening a Roth IRA for tax-free growth in retirement.
Frequently Asked Questions
How do you calculate net worth?
Net worth equals your total assets minus your total liabilities. Add up everything you own (savings, home, investments) and subtract everything you owe (mortgage, loans, credit card debt).
What is a good net worth at age 35?
The Federal Reserve reports that the median net worth for households under 35 is about $39,000. By 35–44, it rises to around $135,000. These are medians — do not panic if you are below. What matters is the direction you are trending.
Does a car count as an asset for net worth?
Yes. A car is an asset at its current market value. But cars depreciate quickly. The outstanding loan on the car is a liability. Many people owe more on a car than it is worth.
What is a negative net worth?
A negative net worth means you owe more than you own. This is common early in adulthood — especially with student loans or a new mortgage. Focus on paying down high-interest debt to turn it positive.
How often should I calculate my net worth?
Once a month or once a quarter is ideal. Tracking it regularly helps you spot trends and stay motivated.