Net Worth Calculator
Two simple ways to
calculate your net worth.
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.
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
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.
Increase your savings.
Minimize Your Risk of Compromise.
Personal Capital Advisors Corporation ("PCAC") compensates ("Company") for new leads. ("Company") is not an investment client of PCAC.
["Author"] has entered into an agreement with Personal Capital Corporation ("Personal Capital"), through which Author will be paid up to $200 for each person who uses webpage to register with Personal Capital and links at least $100,000 in investable assets to Personal Capital's Free Financial Dashboard. The “Author”, due to such compensation, has an incentive to recommend Personal Capital, resulting in a material conflict of interest. Author is not affiliated with Personal Capital and Author's services consist solely of referrals of prospective clients. As a result of this arrangement Author may financially benefit from referring qualified leads to Personal Capital. No fees or other amounts will be charged to investors by Author or Personal Capital as a result of the arrangement. Investors that are referred by Author to Personal Capital and subscribe for investment advisory services provided by Personal Capital’s subsidiary, Personal Capital Advisors Corporation (“PCAC”), will not pay increased management fees or other similar compensation to Author, Personal Capital or PCAC as a result of the arrangement. This agreement with Author does not imply a sponsorship, endorsement, approval, investigation, verification, or monitoring by PCAC of the contents of the Author's website. Personal Capital is not responsible for the content of any website owned by a third party that may be linked to Personal Capital's website regardless of whether the link is provided by PCAC or a third party. Personal Capital does not prepare or maintain, has not and will not review or update, and does not guarantee the accuracy, timeliness, completeness, suitability, reliability, or usefulness of any information contained on a linked third-party website.