# How to calculate net worth

> Add the current value of all assets, add the current balance of all liabilities, then subtract total liabilities from total assets.

- Canonical URL: https://www.worthi.app/guides/how-to-calculate-net-worth
- Author and reviewer: Vlad Poncea
- Published: July 15, 2026
- Last materially updated: July 15, 2026

## The formula

Net worth = total assets − total liabilities.

Investor.gov describes the process as listing what you own, listing what you owe, and subtracting liabilities from assets. Choose one calculation date and one currency. Values from different dates or unconverted currencies can make the result misleading.

## 1. List assets at a reasonable current value

Include assets that have a meaningful current value and belong in the financial picture being measured:

- Cash, checking, savings, and similar accounts.
- Brokerage, retirement, and other investment accounts.
- Real estate and land.
- Vehicles, businesses, collectibles, and other valuable property.

Use current account balances and reasonable market-value estimates rather than automatically using purchase price. For jointly owned property, document whether the worksheet includes the whole asset and related debt or only one person's share.

## 2. List current liabilities

Record the balance currently owed for mortgages, credit cards, student loans, vehicle loans, personal loans, taxes owed, and other debts.

Do not use the original amount borrowed if part has already been repaid. Avoid adding all future interest payments to the current balance unless the chosen method specifically calls for that.

## 3. Add each side and subtract

If assets total USD 505,000 and liabilities total USD 265,000, net worth is USD 240,000. If liabilities were USD 505,000 and assets USD 265,000, the result would be negative USD 240,000.

Keep total assets, total liabilities, net worth, the calculation date, currency, and important valuation notes together.

## 4. Avoid double counting

Do not count the same investment both inside an account total and again as a separate holding. Do not subtract a mortgage twice—once from a home's value and again as a liability—unless the asset row intentionally represents home equity instead of full home value.

Use either full asset value plus full related debt, or a documented equity value, but do not mix both methods in one worksheet.

## 5. Update consistently

A monthly, quarterly, or annual schedule can work. Choose a frequency that matches how actively the values change and how much maintenance is sustainable.

Update after major events such as buying or selling property, taking on or paying off a large debt, or making a substantial investment change. Preserve old snapshots rather than rewriting history, except when correcting a documented error.

## Sources

- [Figure Out Your Finances](https://www.investor.gov/introduction-investing/investing-basics/save-and-invest/figure-out-your-finances), Investor.gov, U.S. Securities and Exchange Commission.
- [Your Money, Your Goals toolkit](https://files.consumerfinance.gov/f/201504_cfpb_ymyg_toolkit-workers.pdf), Consumer Financial Protection Bureau.

## Important limitation

This guide provides educational information, not individualized financial, investment, tax, or legal advice.

## Related documentation

- [Free net worth calculator](https://www.worthi.app/tools/net-worth-calculator/index.html.md)
- [What to include in net worth](https://www.worthi.app/guides/what-to-include-in-net-worth/index.html.md)
- [How often to update net worth](https://www.worthi.app/guides/how-often-to-update-net-worth/index.html.md)
- [worthi net worth tracker](https://www.worthi.app/net-worth-tracker/index.html.md)
- [worthi editorial policy](https://www.worthi.app/editorial-policy/index.html.md)