How to calculate your net worth
Net worth = Total assets − Total debts
- List your assets: cash, savings, investments, retirement accounts, your home's market value, your car's resale value and anything else valuable you could sell.
- List your debts: mortgage balance, car loans, student loans, credit card balances and any other loans.
- Subtract debts from assets.
Example: with the sample numbers above, assets total $458,000 and debts $286,500, giving a net worth of $171,500.
Typical net worth by age (US)
| Age of household head | Median net worth |
|---|---|
| Under 35 | about $39,000 |
| 35–44 | about $135,600 |
| 45–54 | about $247,200 |
| 55–64 | about $364,500 |
| 65–74 | about $410,000 |
Source: Federal Reserve Survey of Consumer Finances (2022), rounded. Medians are the middle household. Half have more, half have less.
How to grow your net worth
- Pay off high-interest debt first: every dollar of credit card debt you clear raises your net worth and saves interest.
- Automate saving and investing: small, regular contributions compound over time.
- Track it once or twice a year: the trend matters more than any single number.
Frequently asked questions
What is net worth?
Net worth is everything you own (assets) minus everything you owe (liabilities). It's the single best snapshot of your overall financial health — and tracking it once or twice a year shows whether you're moving in the right direction.
Is a negative net worth bad?
It's common, especially early in your career or after student loans or buying a car. What matters most is the trend: paying down debt and saving steadily will turn it positive over time.
Should I include my car and belongings?
Include your car at its realistic resale value (not what you paid). Most people leave out furniture, clothes and electronics because they're hard to sell for much. Some prefer to leave out their home too and track 'liquid' net worth separately.
What's liquid net worth?
Liquid net worth counts only assets you could turn into cash quickly — cash, savings and investments — minus all debts. It shows how well you could cope with an emergency or job loss.