What is net worth?
Net worth is a snapshot of your financial health: everything you own (assets) minus everything you owe (liabilities). A positive net worth means your assets outweigh your debts; a negative one means the opposite. Tracking it over time is one of the best ways to see real financial progress.
The formula
Net worth = Total assets − Total liabilities
Worked example
Assets of $15,000 cash, $25,000 investments, $40,000 retirement, $300,000 property, and $15,000 vehicles ($395,000 total); debts of $220,000 mortgage, $12,000 car, $3,000 cards, and $8,000 student loans ($243,000 total):
- Net worth = $395,000 − $243,000 = $152,000
Notice how much the mortgage and home value swing the number — that's why valuing them realistically matters.
How to grow your net worth
Two levers move net worth: growing assets (saving, investing, paying down a mortgage's principal) and shrinking liabilities (clearing high-interest debt). Recalculate every few months and watch the trend, not the single figure — steady upward movement is the goal.
Common mistakes to avoid
Overvaluing assets like a car or home (use realistic market values). Forgetting debts such as student loans or credit cards. Counting the gross value of a financed asset without subtracting its loan. Panicking over a negative number that's actually trending upward.
Frequently asked questions
What counts as an asset?
Cash, savings, investments, retirement accounts, property, vehicles, and other valuables you own.
What counts as a liability?
Mortgage, car loans, credit card balances, student and personal loans, and any other debts.
Should I include my home?
Yes — include its current market value as an asset and the remaining mortgage as a liability.
Is a negative net worth bad?
It's common early on (student loans, a new mortgage). What matters is the trend improving over time.
How often should I check it?
Every few months is plenty. Watch the trend rather than the single number.
Is my data saved?
No. Everything runs in your browser; nothing is uploaded.