How the Federal Reserve groups it
The Survey of Consumer Finances calculates net worth as total assets minus total debts. Its published flowchart splits assets into financial assets, such as accounts and investments, and non-financial assets, such as vehicles, homes and businesses. Debts are split by type, from mortgages to credit cards.
Financial assets checklist
| Item | Value to use |
|---|---|
| Checking, savings and money market accounts | Balance on your chosen date |
| Certificates of deposit and savings bonds | Current value |
| Shares, bonds and investment funds | Market value |
| Retirement accounts, such as a 401(k) or IRA | Statement balance, before tax |
| Cash value of life insurance | The cash surrender value, not the death benefit |
| Money owed to you | Only what you expect to be repaid |
Non-financial assets checklist
| Item | Value to use |
|---|---|
| Main home | Realistic sale value, with the mortgage as a debt |
| Other property, such as a rental or land | Realistic sale value |
| Cars and other vehicles | Resale value |
| Share of a private business | A cautious estimate of what your stake could sell for |
| Jewellery, art and collections | Only items with a clear resale value |
Debts checklist
- Mortgage principal, plus any home equity loan or line of credit.
- Car and other vehicle loans.
- Student loans, including any in deferment.
- Credit card balances, even if you pay them off each month.
- Personal loans, family loans and buy-now-pay-later plans.
- Overdrafts, unpaid tax and medical bills.
What to leave out
- Future income, such as next year’s salary. Net worth is a balance today. See net worth vs income.
- Everyday possessions like furniture and clothes, which rarely sell for much.
- The death benefit of term life insurance, which has no cash value while you are alive.
- Credit limits. An unused limit is neither an asset nor a debt.
Some items, such as a pension that pays a fixed income in retirement, are hard to value. Many people list them separately rather than guessing. Whatever you choose, write the rule down and apply it each time.
Once you have the list, follow the five steps in how to calculate your net worth, and be careful to count your home only once, as explained in does net worth include home equity.
Questions people ask
Do retirement accounts count even though I cannot touch them yet?
Yes. They are part of total net worth. They are left out of liquid net worth, which measures what you could reach quickly.
Should I subtract tax on my retirement balance?
The standard approach uses the pre-tax balance. If you prefer an after-tax figure, apply the same rule every time and label it.
Sources
- Federal Reserve Board, SCF net worth flowchart: the asset and debt categories used in the survey.
- Federal Reserve Board, Changes in U.S. Family Finances from 2022 to 2025.
Educational information only, not personal financial advice.