Assets
Primary home
$
Holiday home
$
Other real estate
$
Shares and financial investments
$
Motor vechicles
$
Other assets
$
Savings accounts
$
Checking accounts
$
Other invesments
$
Liabilities
Mortgage
$
Car loan
$
Personal loan
$
Student loan
$
Lease purchase
$
Consumer loan
$
Credit card and bank overdraft
$
Other debt
$
Results
Your total asssets
$
Your total liabilities
$
Your net worth
$
Compare with US average net worth
Check by
income
Income
up to $25 300
Your personal net worth is 0$.
Average net worth of US population with income up to $25,300 is $6,700.

The net worth calculator is a simple tool that helps you calculate your net wealth. If you want to know what your net worth is, all you need to do is to input your assets and liabilities in the proper fields. Our smart net worth calculator will compute the results in less than a second. We also allow you to compare yourself with the average net worth in the US.

Read our article to find out:

  • What does net worth mean and what is net worth definition?
  • How to calculate net worth?
  • What is the net worth formula applied in our calculator?
  • What is the average net worth of individuals in the US?

If you want to make smarter financial decisions, don't forget to check out our other calculators. When it comes to planning your family's expenses, the budget calculator is indispensable. You may also take advantage of our credit card payoff calculator. The dream come true calculator will tell you how long it will take to save up enough money to afford your dream.

What is net worth definition?

Well, if you are wondering "what does net worth mean", here is a brief explanation. In general, we can define net worth (which is also referred to as a net wealth) as a difference between what you own and what you owe. More specifically, the net worth definition states that your net worth is the sum of the assets you have, minus the total value of your liabilities. The means that net worth determines how much money you would have if you were to sell off all you have and pay off all of your debts.

Assets include all of your properties, investments, and cash. Liabilities are all of your debts. Note that some liabilities are closely related to assets. For example, your apartment is an asset, but the mortgage you took to finance its purchase is a liability.

What assets are included in net worth?

Assets that are usually taken into account during net worth calculations are: your home (or homes), vehicle (or vehicles), savings, cash, and the current value of your investments. You can also count other items of significant value (art, jewelry, sports equipment, etc) as your assets.

What liabilities are included in net worth?

Liabilities include mortgages on your home and other real estate, all types of loans (car loan, personal loan, student loan, consumer loan, etc.), lease purchases, debt on credit cards and bank overdrafts. In addition, liabilities are also all your informal debts (e.g., loan from the family, friends).

How to calculate net worth?

Are you wondering how to calculate your net worth? Don't worry; it is easier than you think.

Note that according to the information provided in the previous section, net worth is a difference between all of your assets and your liabilities. This means that to calculate your net worth you need to compute the total value of your assets. Remember to carefully prepare the list of your assets (everything you own) and to input an accurate value into each field.

You also need to calculate the total value of your liabilities. Like before, you should prepare a detailed list containing all of your loans.

The final step is to subtract your liabilities from your assets according to the following net worth formula:

Net Worth = Total Assets − Total Liabilities

That's it! The result of this subtraction is your net worth (net wealth). Now you can compare yourself with the US average net worth and find out how you can increase your net worth.

What net worth formula is applied in our calculator?

Our net worth calculator is based on the simple formula given in the previous section. It allows you to compute your net worth quickly and effortlessly. It also helps you to systematize your assets and liabilities.

The first section contains fields that represent your assets. Among them, you will find the most typical kinds of personal assets. If you have an asset not defined in a particular field (e.g. art) just input it into the other assets field. To compute the total value of your assets, the calculator uses the following formula:

your total assets = primary home + vacation residence + other real estates + shares and financial investments + motor vehicles + other assets + savings accounts + checking accounts + other investment

The second section is liabilities. It includes the most common types of loans and debts. If you are not sure where to put some kind of debt, treat it as an other debt. To calculate the total value of your liabilities, we use the following formula:

your total liabilities = mortgage + car loan + personal loan + student loan + lease purchase + consumer loan + credit card and bank overdraft + other debt.

In the last section, we provide the final results. Besides the total value of your assets and liabilities, you will also find the field that provides you with your net worth. Its value is calculated in the following way:

your net worth = your total assets – your total liabilities

Average net worth in the US

Now that you know your personal net worth, you may be curious where you place on the social ladder. In the table below, you can check and compare the net worth of US families based on income, age, and education. All data comes from the Federal Reserve 2016 Survey of Consumer Finances report, which was issued in September 2017.

Yearly income tier Average net worth Age Average net worth Level of education Average net worth
Up to $25 300 $6 700 Less than 35 $11 100 No high school diploma $22 800
$25 300 to $43 500 $32 300 35–44 $59 800 High school diploma $67 100
$43 501 to $69 500 $81 600 45–54 $124 200 Some college $66 100
$69 501 to $111 400 $168 300 55–64 $187 300 College degree $292 100
$111 401 to $177 100 $393 600 65–74 $224 100
Over $177 100 $1 640 100 75 or more $264 800

Note that the average family net worth in the entire US is $97,300. It is 8.03% lower than in 1998 when it was equal to $105,800.

How to increase your net worth?

Well, calculating your net worth allows you to get a good overall indication of your financial situation. If the results are not satisfactory, you should consider how to increase your net worth. The general rule of a thumb says that to improve your net wealth, you should increase your assets and decrease your debts. You can achieve it by:

  • cutting your expenses - the less that you spend, the more you can save, causing your net worth to grow.
  • reducing debt – consider making higher monthly payments to consolidate your loans.
  • pay off your mortgage - another form of debt reduction, however usually much more significant in terms of money.
  • making investments – try to multiply the money you have, do not let it sit in the bank account (check our savings calculator).
  • making retirement contributions – it's even better for net wealth improvement than making investments, as retirement plans are usually tax-advantaged, which allows you to earn more.

And last, but not least, do not forget to periodically check your net worth and try to set some middle-term and long-term goals. Remember that what gets measured gets managed!

Tomasz Jedynak, PhD

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