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Net Worth Calculator

Two simple ways to
calculate your net worth.

  1. Step 1:

    Get a quick estimate of your net worth with this online calculator.

  2. Step 2:

    Use our free and secure Net Worth tool to see your true net worth in real time. Just download, then link your bank accounts, investments, retirement accounts, and more to know where you really stand.

Net worth calculator on mobile

What is your net worth and why is it important?

Your net worth is one of the most important numbers in your financial picture. It’s the difference between
everything you owe and everything you own. In other words, all of your liabilities are subtracted from all
of your assets. It’s a simple way to measure your financial health at any given time. As you track your net
worth over long periods, it’s an effective way to see if your finances are moving in the right direction.

How Do You Calculate Net Worth?

The first step in calculating your net worth is adding up your assets and liabilities. Your assets include anything of value that you own, while your liabilities include anything you owe. Once you’ve added up your assets and liabilities, just follow this basic formula:

Assets - Liabilities = Net Worth

The simplest way to calculate your net worth is using Personal Capital’s Net Worth Calculator. When you sign up for a free account, you can link all of your financial accounts and see your current net worth at any time.

What Are Assets and Liabilities?

You might notice that some of your possessions fall under the categories of both assets and liabilities. For example, most people can’t afford to buy a home in cash, so they finance it. Your home is an asset, while the money you still owe on your mortgage is a liability.

An asset is something you own that has financial value. Assets are either cash or can be converted to cash. Common assets you’ll count toward your net worth include checking and savings accounts, retirement accounts, brokerage accounts, your home, vehicles, and anything else of financial value.

A liability is a debt or outstanding financial obligation. This includes any debt such as mortgages, car loans, student loans, credit card debt, etc. Liabilities don’t include your monthly bills like rent and utilities unless you aren’t up to date with your payments. In that case, the past due amount would be considered a liability.

Is a 401k Included in a Net
Worth Calculator?

Yes. The value of your 401k account is a part of your net worth and should be included in the net worth calculation. Like anything else of financial value, the balance of your 401k account — or any retirement account, for that matter — is considered an asset.

When you start your career, your 401k is likely to account for just a small portion of your net worth. But as you contribute and your balance continues to grow and compound, it will make up a greater portion of your net worth.

Next Steps to Improve Your Net Worth

You may find that when you calculate your net worth for the first time, the number is lower than you’d like. Many people even have a negative net worth, especially given the percentage of students graduating with student loan debt.

The most important factor to pay attention to isn’t what your net worth is today — it’s how it progresses over time. If your net worth consistently increases, then you’re moving in the right direction.

Here are some next steps to help you improve your net worth:


Pay off debt.

Your net worth is your assets minus your liabilities. One of the simplest ways to increase your net worth is to reduce your liabilities, meaning to pay off debt. When you sign up for a free Personal Capital account, you can see all of your debts in one place and come up with a plan to pay them off.


Increase your savings.

Consistently saving is one of the best ways to increase your net worth. Start by building your emergency fund with 3-6 months worth of expenses. Then you can start saving for financial goals. Personal Capital’s Savings Planner will track your savings and tell you if you have enough to fund 3-6 months of budgeted expenses.


Minimize Your Risk of Compromise.

Investing is like the secret weapon of net worth building. Your account balance doesn’t just grow when you transfer money in. Instead, it should continue to grow and compound over time. The Personal Capital Dashboard can help you track your investment holdings and portfolio performance. The tools also uncover hidden fees. And if you want a trustworthy professional to manage your investments for you, Personal Capital also offers wealth management services.

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