Net worth formula
The same formula works whether the result is positive, negative, or close to zero.
Assets - debts = net worthWhat you own
Add cash, account balances, and realistic values for things you own. If you own a home, add its current value here and the remaining mortgage below.
Asset
Value
What you owe
Add the balances you still owe on credit cards, loans, a mortgage, student loans, or anything else.
Debt
Balance
Net worth result
This number is your financial snapshot today. Positive means assets are larger than debts; negative means debts are larger. Either result becomes more useful when compared with the same calculation later.
Total assets$0.00
Total debts$0.00
Net worth$0.00
Total assets is the value of everything entered as owned. Total debts is the amount still owed—not the sum of monthly payments. Net worth subtracts the second number from the first.
Needs Review
Start with assets and debts.Your net worth snapshot will appear once you add at least one amount.
Debt compared with assets shows how large total debt is relative to total assets. For example, 40% means $0.40 of debt for each $1.00 of assets. Above 100% means debt is larger than assets. Use the direction over time rather than treating one percentage as a grade.
