Net Worth Calculator
Net Worth Calculator
Everything you own minus everything you owe: your net worth, with totals and the share of your assets that is funded by debt.
Net worth
Cash $2,00,000, investments $8,00,000, retirement accounts $6,00,000, a home worth $60,00,000, a car worth $5,00,000 and gold worth $3,00,000; a home loan of $35,00,000, a car loan of $3,00,000 and $50,000 on credit cards
Net worth and the debt-to-asset ratio
- assets
- what you own, at what it would sell for today
- liabilities
- what you owe today: the outstanding balance of every loan and card, not the EMIs
Worked example
Cash $2,00,000, investments $8,00,000, retirement accounts $6,00,000, a home worth $60,00,000, a car worth $5,00,000 and gold worth $3,00,000; a home loan of $35,00,000, a car loan of $3,00,000 and $50,000 on credit cards
Assets = 2,00,000 + 8,00,000 + 6,00,000 + 60,00,000 + 5,00,000 + 3,00,000 = $84,00,000
Liabilities = 35,00,000 + 3,00,000 + 50,000 = $38,50,000
Net worth = 84,00,000 − 38,50,000 = $45,50,000
Debt-to-asset ratio = 38,50,000 ÷ 84,00,000 = 45.83%
Without the home, the car and the home loan: $15,50,000
What your net worth tells you — and what it does not
Net worth is the simplest summary of your finances: list what you own, list what you owe, and subtract. Positive means your assets would more than pay off every debt; negative means they would not. One figure on one day says little, but the same calculation repeated each year shows whether you are moving forward, and it counts every rupee of debt repaid as progress even when your bank balance has not changed.
Value assets at what they would fetch today, not what you paid: a car bought for ten lakh may resell for far less, and property and gold should be at current prices. For loans, enter the outstanding balance from your latest statement, not the EMI or the original amount. Retirement accounts count, but you usually cannot spend them before retirement, which is why the page also shows net worth without your home and vehicles — closer to the wealth you could use. In the example the full net worth is $45,50,000, but only $15,50,000 of it is outside the home and the car.
The debt-to-asset ratio is the share of what you own that is paid for with borrowed money — 45.83% in the example, mostly the home loan. It usually starts high after buying a home and falls as the loan is repaid. A home loan backed by a home is a different thing from a credit card balance at a high rate, so look at what the debt is as well as how much. For card debt, the credit card payoff calculator shows how quickly it can go; for the savings side, the emergency fund calculator and the savings goal calculator. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How do I calculate my net worth?
Add up everything you own at today’s value and subtract everything you owe. $84,00,000 of assets and $38,50,000 of debts is a net worth of $45,50,000.
Should I include my home?
Yes, at what it would sell for today, with the home loan as a liability. The page also shows your net worth without the home and vehicles, since you cannot easily spend either.
What is a good debt-to-asset ratio?
There is no single right figure. It is naturally high soon after buying a home with a loan and falls as the loan is repaid. A falling ratio over the years is the sign of progress.
Is a negative net worth bad?
It means you owe more than you own, which is common early in a career, with an education loan, or just after buying a home. What matters is the direction it moves year by year.
Related calculators
References
- U.S. Securities and Exchange Commission, Investor.gov. Figure Out Your Finances: list what you own (assets) and what you owe (liabilities) and subtract; “If your liabilities are larger than your assets, you have a ‘negative’ net worth.”
- Ross SA, Westerfield RW, Jordan BD. Fundamentals of Corporate Finance. McGraw-Hill. The total debt ratio: total liabilities ÷ total assets.