Net worth: the one number that ties it all together
Income tells you what flows in; net worth tells you what you’ve kept. It’s the single best measure of financial progress — the sum of everything you own minus everything you owe. Watching it climb year over year matters far more than any one paycheck.
The formula
Net worth = Total assets − Total liabilities
where assets are everything of value you own andliabilities are everything you owe. Split assets into liquid (cash and investments) and illiquid (retirement, property, vehicles) to see how much you could actually reach.
What makes this calculator different
- Categorized breakdowns. Not just two totals — see how your assets and debts split across cash, investments, retirement, property, vehicles, mortgages, loans, and more, each with its share.
- Liquid vs. illiquid. A home worth $400k doesn’t help with next month’s bills. We separate what you could access quickly and report your liquid net worth.
- Debt-to-asset ratio. A one-glance read on how leveraged you are — something a single net-worth number hides.
- A multi-year projection. Set your saving pace, debt paydown, and expected growth to watch your net worth compound forward year by year.
Frequently asked questions
What counts toward my net worth?+
Net worth is everything you own (assets) minus everything you owe (liabilities). Assets include cash and savings, investments, retirement accounts, the market value of property and vehicles, and anything else of value you could sell. Liabilities include your mortgage, auto and personal loans, credit-card balances, and student loans. The difference between the two totals is your net worth — it can be positive or negative.
What’s the difference between liquid and illiquid net worth?+
Liquid assets are ones you could turn into cash quickly without a big penalty — typically cash, savings, and taxable investments. Illiquid assets — retirement accounts, your home, and vehicles — hold value but can’t be tapped instantly (selling a house takes months; raiding a 401(k) early triggers taxes and penalties). Liquid net worth is your liquid assets minus all your debts: a truer picture of what you could actually access in an emergency. This calculator splits the two out so a big number isn’t hiding the fact that most of it is tied up.
What’s a good net worth for my age?+
There’s no single right number, but a common rule of thumb (Stanley & Danko) is expected net worth ≈ age × pre-tax income ÷ 10. So a 40-year-old earning $80,000 might aim for roughly $320,000. More useful than any benchmark is the trend: is your net worth rising year over year? Early in a career it’s often negative because of student loans and mortgages, and that’s normal — the projection here shows how steady saving and debt paydown flip it positive.
What is the debt-to-asset ratio and what’s healthy?+
It’s your total liabilities divided by your total assets, shown as a percentage. A ratio under 50% means you own more than twice what you owe; under 30% is comfortably strong. Higher ratios mean more of your assets are financed by debt, which leaves less of a cushion if values fall or income drops. It’s a quick gauge of financial leverage that a single net-worth figure doesn’t reveal.
How do I grow my net worth over time?+
Two levers: grow assets and shrink liabilities. Save and invest consistently so assets compound, pay down high-interest debt to stop it draining you, and avoid lifestyle creep so raises turn into savings rather than spending. The projection in this calculator lets you set an annual savings amount, an annual debt-paydown amount, and an expected asset growth rate to see how those choices compound into your net worth over the years.
Disclaimer: This calculator is for educational purposes only. Asset values (especially property and vehicles) are estimates, and projections rely on assumptions that won’t match reality exactly. It is not financial advice.