Net Worth
Total assets minus total liabilitiesโthe true measure of your financial health
What You Need to Know
Net worth is calculated by subtracting all debts (liabilities) from all assets. It represents your true financial position and is the most comprehensive measure of wealth.
Calculation: Net Worth = Total Assets
- Total Liabilities
Assets Include:
- Cash and savings accounts
- Investment accounts (stocks, bonds, mutual funds)
- Retirement accounts (401k, IRA, pension)
- Real estate (home equity, rental properties)
- Vehicles, jewelry, collectibles
- Business ownership
Liabilities Include:
- Mortgage balances
- Credit card debt
- Student loans
- Auto loans
- Personal loans
- Medical debt
Positive vs. Negative Net Worth:
- Positive: You own more than you owe (wealthy)
- Negative: You owe more than you own (debt burden)
Example: $500,000 assets - $300,000 liabilities = $200,000 net worth
Sources & References
This information is sourced from authoritative government and academic institutions:
- consumerfinance.gov
https://www.consumerfinance.gov/consumer-tools/financial-well-being/
Related Calculators & Tools
Put your knowledge into action with these interactive tools:
Complete Net Worth Dashboard Calculator - Free Online
Calculate your complete net worth dashboard with our free tool. Understand where you stand financially.
Net Worth Tracker Calculator - Free Online
Track your net worth progress with our free tool. Monitor your goals and stay on target.
Net Worth Age Comparison Calculator - Free Online
Calculate your net worth age comparison with our free tool. Understand where you stand financially.
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