How this calculation works
This tool excludes real estate, vehicles, private businesses and retirement accounts. The haircut is a user-selected reduction for uncertainty or potential transaction costs; it is not a tax estimate. Definitions vary, so this tool states its conservative treatment explicitly. Avoid subtracting the same debt twice.
A worked example
With $5,000 cash, $20,000 savings, $40,000 investments, a 10% haircut and $25,000 debt, liquid net worth is $36,000. A home may make total net worth much higher without increasing this result.
Common questions
Is this my emergency fund?
No. Taxable investments can lose value, and liquid net worth subtracts all liabilities. Cash available for emergencies is a different measure.
Why subtract a mortgage if the house is excluded?
This conservative definition subtracts all liabilities. Other definitions differ. Use a consistent definition and do not interpret the result as cash available to spend.
Go a little deeper.
Read the supporting guide for definitions, examples and common mistakes.
Read the guide ↗Educational tool, not individualized financial, investment or tax advice. Estimates depend on your inputs and do not guarantee future results.