How much is net worth?
Assets minus liabilities equal net value. Alternatively, you might consider net worth as everything you own minus everything you owe. Use our net worth calculator to figure out how much money you have.
How to Calculate Your Net Worth?
We advise that you enter information that accurately reflects the value of your assets and obligations in order to get the most benefit out of the net worth calculator.
Recognizing Your Resources
You need to have a solid understanding of the worth of your most valuable assets in order to use this calculator to determine your net worth.
Simply put, assets are stuff that you could sell for money. Aside from homes, cars, and even the money in your checking account, assets also include stocks, bonds, and other types of investments.
Some assets can be sold more quickly at a price that reflects their present value than others, making them more liquid. The most liquid asset, for instance, is cash. Other assets, however, would require more time and work to sell, and you might not receive the full value you anticipated.
Enter an estimate of the asset’s value if you were to sell it right now for each type of asset in our calculator. Don’t stress about any outstanding debt you may have, such as a mortgage or a vehicle loan. In the section under “Your Liabilities,” we’ll discuss those.
Rate of Annual Asset Growth
It can be very difficult to calculate the annual rate of growth in the value of your assets. You can use our calculator to add up the values of four distinct asset categories, including cash, investments, personal property, and real estate.
It would be difficult to choose the appropriate overall yearly growth rate because each of these would likely generate a substantially different annual rate of return. In order to reflect fairly conservative returns for real estate and investments with a high stock concentration, this calculator starts with a growth rate of 7%. If you have sizable holdings in cash or other assets with poor or no rates of return, you might want to cut this even further.
Knowing Your Responsibilities
Liabilities, or the negative side of your personal balance sheet, are outstanding financial debts that you owe. Simply enter the balance due on each type of responsibility you owe in our calculator.
Some liabilities gradually change into assets over time. As you pay down your mortgage and build equity in your home, that is what happens. In other situations, such as when you pay off a credit card amount, paying off a liability simply means you are no longer obligated to the party who lent you the money.
Annual Growth Rate of Liabilities
Finding the yearly growth rate of your liabilities may be just as difficult as finding the annual growth rate of your assets.
You’ve previously consented to the terms and interest rates of some liabilities, such as a vehicle loan or a mortgage. Other obligations, such as credit card debt and college loans, are more indefinite. Your liabilities could increase if you keep adding to your balance or if you just make small frequent payments.
The growth rate of your liabilities should be zero if you have a mortgage and a car loan and are making regular payments on each (in accordance with the conditions of your loan agreement). Your obligation growth rate should be zero if you have a credit card balance that you are not adding to and are paying off each month.
However, if you have credit card debt or student loans that you’re not consistently paying down, consider the interest rates and balances you have in order to enter a ballpark estimate of what your obligation growth rate would entail.