Your Net Worth And Using A Net Worth Calculator

Net worth calculator

Have you been wondering “What is my net worth?”. When it comes to calculating net worth, many people believe that ignorance is bliss, and there are also many people who absolutely love doing it. Regardless of your viewpoint, it is a really important exercise to do to get a clear view of where you currently stand financially.

Not only that, calculating it can help you determine what areas you need to focus on to get your numbers up. Knowing where you stand with your net worth based on your age can also help you decide on what money moves will be most beneficial to increase your worth based on your financial goals.

So what is net worth?

It is simply your assets minus your liabilities. Your assets are the things you own while your liabilities are the things you owe. Let' discuss assets and liabilities in more detail.

What are assets?

Of course, any cash you have saved in your checking and savings accounts is an asset. However, assets are also things of value that can be converted to cash. These can include personal property such as jewelry, collectibles, vehicles (less amount owed), etc. Investments such as stocks, bonds, annuities, retirement plans, pensions, and some life insurance policies are types of assets. Your home or property are also assets, however, the amount of the asset will be the equity minus what is owed on the mortgage loan. It is however important to remember that some assets can be impacted by depreciation.

What are liabilities?

Liabilities are any debts you owe. For instance, the amount owed on your mortgage loan, vehicles if they are not paid off, credit card debt, and student loans. Basically, any money you owe is a liability that will be deducted from your assets. For example, let's say you have $350,000 total in assets and your liabilities are $150,000 total. After all of your liabilities are paid off, your total net worth would be the remaining balance of $200,000.

How do I calculate my net worth?

It’s pretty simple to calculate your net worth. You calculate it by subtracting your liabilities from your assets (Assets - Liabilities). You can do this on a simple spreadsheet or paper on your own by making a list of all your assets and totaling their value up and then doing the same for your liabilities.

Once you have a total number for your assets and also your liabilities, subtracting that total liability number from your total assets number will give you your net worth. There are also many calculators online that can help you too.

Using a net worth calculator

Calculating your net worth may seem overwhelming, but net worth calculators simplify the process. Using a net worth calculator also ensures you are accurately counting all of your assets and liabilities, so you get the correct balance of your net worth. Gather up all the information on your assets and liabilities and check out the calculators below to figure out where you stand financially.

Examples of net worth calculators

Here are a few of our favorite net worth calculators to help you answer your burning question, "what is my net worth?"

  1. Kiplinger net worth calculator
  2. CalcXML net worth calculator
  3. AARP net worth calculator

Help: My net worth is negative!

When you consider average net worth by age, many people start out with a negative net worth. If this is you, it is ok. Given time and the continuity of practice, good financial habits, this can change.

Negative net worth can be due to the fact that you haven't earned/invested enough income to offset your debt. For example, it is not uncommon for younger people who have student loans but have only earned a few years of income to have a negative net worth. Another example of negative net worth could be due to overspending and having large amounts of credit card debt and not much in terms of assets to offset the debt.

How do I increase my net worth?

Every time you make a payment towards debt or put money in your savings account or acquire assets, you are increasing your net worth. Even if it remains negative for a while when you make a debt payment you reduce your total amount of debt which in turn increases your net worth. So don't be afraid or discouraged by what you see if you end up with a negative number.

It's a good idea to track your net worth every month or every couple of months so you can see the progress that you are making. Here are some more specific tips to increase your net worth:

Make more than the minimum payments

One of the quickest ways to increase your net worth is by paying off your debt. Paying more than just minimum payments can help you rapidly pay down your debt and start building wealth. This can also save you thousands of dollars in interest and that money can be used to bulk up your savings accounts. The first thing to do when trying to increase your net worth is to create a debt payoff strategy and knock out your debt fast.


Budgeting your money is one of the most crucial steps to increasing your net worth. Having a budget ensures you aren't overspending and you are saving enough money every month to reach your financial goals. When you create your budget you want to be sure you are budgeting for your savings, retirement, and investments. Picking the right budgeting method can help you successfully manage your money and pave the road to financial success.

Focus on building assets through investing

A sure way to increase your net worth is to build assets through investing. When it comes to investing, you want to diversify your portfolio as you do your income streams. There are many ways to invest your money, such as real estate, businesses, retirement plans, stocks, bonds, and more. You don’t need a ton of money to get started investing, and the sooner you start, the faster you can increase your net worth. Grab a copy of our bestselling book, “Learn how investing works, grow your money” to get started!

You can increase your net worth

Remember, building wealth takes time and is a journey. You may be scared to ask yourself, what is my net worth? However, the sooner you crunch the numbers, the faster you can start increasing your net worth. Make it a goal to develop good financial habits, stay consistent with your debt pay off, savings, and investing, and most importantly, believe that you can. Increasing your net worth can help you achieve early retirement and give you a secure financial future.

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