Net Worth Calculator

What Is Net Worth?

Net worth is the simplest measure of your financial health. It's the total value of everything you own (assets) minus everything you owe (liabilities).

Unlike income, which measures how much money flows in, net worth measures how much wealth you've accumulated. A person earning $200K/year with $300K in debt has a lower net worth than someone earning $60K/year with $100K saved. Your income is your speed — your net worth is your position.

Why Track Net Worth?

• It's the only number that matters. Income, savings rate, and budget adherence are all tactics. Net worth is the scoreboard.
• It reveals hidden problems. You might feel rich with a high income but discover your debt is growing faster than your assets.
• It motivates good behavior. Watching your net worth climb creates a positive feedback loop that makes saving easier.
• It helps with big decisions. Should you pay off debt or invest? Buy or rent? Your net worth context makes these decisions clearer.

How Often Should You Check?

Monthly is ideal. More often creates noise from market fluctuations and pay cycles. Less often makes it hard to spot trends. Pick a day (like the 1st) and make it a habit.

Net Worth Benchmarks by Age

These are rough medians from the Federal Reserve's Survey of Consumer Finances. Don't compare yourself to averages — they're skewed by the ultra-wealthy. The median is more useful:

Source: Federal Reserve Survey of Consumer Finances (2022). Your target depends on your income, location, and goals.

Tips for Growing Net Worth

1. Pay off high-interest debt first. Credit card debt at 20%+ APR is a guaranteed negative return.
2. Max out employer 401k match. It's a 50-100% instant return. Nothing beats free money.
3. Build 3-6 months emergency fund. This prevents debt spirals when life happens.
4. Invest consistently. Time in the market beats timing the market. Start with low-cost index funds.
5. Increase your income. There's a floor on how much you can cut expenses but no ceiling on earning.