1. What is Net Worth?

Net worth is the value of all assets owned minus all outstanding debts. It's a key financial metric that provides a snapshot of your financial health at a specific point in time.

2. How to Calculate Net Worth

The calculator uses the simple net worth formula:

Assets include:

• Cash and savings accounts
• Investments (stocks, bonds, retirement accounts)
• Real estate (primary residence, rental properties)
• Vehicles
• Valuable personal property

Debts include:

• Mortgages
• Car loans
• Student loans
• Credit card debt
• Personal loans

3. Why Net Worth Matters

Details: Tracking net worth over time helps you measure financial progress, make better financial decisions, and work toward financial independence.

4. Using the Calculator

Tips: Enter the total value of all your assets and all your debts in USD. The calculator will instantly show your net worth. Update these numbers regularly (monthly or quarterly) to track your financial progress.

5. Frequently Asked Questions (FAQ)

Q1: What is a good net worth?
A: This depends on age and income. A positive net worth is good, and it should generally grow as you age. Dave Ramsey suggests aiming for a net worth that equals your annual income by age 30.

Q2: Should I include my home in assets?
A: Yes, but only include your equity (home value minus mortgage). The mortgage should be listed under debts.

Q3: How often should I calculate my net worth?
A: Monthly is ideal, but quarterly at minimum. Regular tracking helps you stay on top of your financial situation.

Q4: What if my net worth is negative?
A: This means you owe more than you own. Focus on debt reduction and building assets to turn this around.

Q5: Does net worth include income?
A: No, net worth is a measure of what you own minus what you owe at a point in time. Income affects net worth over time as you save/invest or pay down debt.