How to Calculate Your Net Worth (Step-by-Step Formula)
By Jorge Sanchez · April 20, 2026 · 5 min read
Net worth is the single most important number in personal finance. It tells you exactly where you stand financially — not how much you earn, not how much you spend, but how much you actually have. Here's how to calculate it correctly.
The Net Worth Formula
It's that simple. The complexity is in knowing what to include — and what not to.
Step 1: List Your Assets
An asset is anything you own that has monetary value.
Liquid Assets (easiest to count)
- Checking and savings accounts
- Money market accounts
- CDs and Treasury bills
- Cash on hand
Investment Assets
- 401(k), IRA, Roth IRA balances (use current value)
- Brokerage accounts
- Crypto holdings (use current market value)
- HSA balance
Physical Assets
- Home (use current market value, not purchase price)
- Other real estate
- Vehicles (use Kelley Blue Book value)
- Business ownership stakes
Step 2: List Your Liabilities
A liability is anything you owe.
- Mortgage balance outstanding
- Car loans
- Student loans
- Credit card balances
- Personal loans
- Medical debt
- Any other money you owe
Example Calculation
| Item | Amount |
|---|---|
| Assets | |
| Home (market value) | $350,000 |
| 401(k) | $85,000 |
| Savings | $22,000 |
| Car (KBB) | $18,000 |
| Total Assets | $475,000 |
| Liabilities | |
| Mortgage remaining | $240,000 |
| Car loan | $11,000 |
| Credit card debt | $4,200 |
| Total Liabilities | $255,200 |
| Net Worth | $219,800 |
What's a Good Net Worth by Age?
The median U.S. net worth by age group (Federal Reserve data):
| Age Range | Median Net Worth | Rough Target (1× income) |
|---|---|---|
| Under 35 | $39,000 | 1× annual income |
| 35–44 | $135,000 | 3× annual income |
| 45–54 | $247,000 | 6× annual income |
| 55–64 | $364,000 | 10× annual income |
| 65–74 | $410,000 | 12× annual income |
Median = half of Americans have more, half have less. If you're above the median for your age, you're ahead of the curve.
Tips to Grow Net Worth Faster
- Pay off high-interest debt first. Eliminating a 20% APR credit card is a guaranteed 20% return.
- Max your 401(k) match. Free money is the highest ROI action available.
- Track it quarterly. What you measure, you improve.
- Home equity counts. Every mortgage payment grows your net worth.
- Avoid lifestyle inflation. Earning more doesn't build wealth — saving the difference does.
Net Worth Calculator
Enter all your assets and liabilities for a complete net worth breakdown.
Calculate My Net Worth →Jorge Sanchez · Live Event Production Specialist · CalQpro