How this calculation works
Include the full market value of a home and its mortgage separately. Count each asset once. For a retirement account, use its current balance rather than future pension payments. Debt balances are amounts still owed, not monthly payments.
A worked example
A household with $495,000 in assets and $180,000 in debts has a net worth of $315,000. A negative result means debts exceed the assets included in your snapshot.
Common questions
Should I count my income?
Income is a flow of money, while net worth is a balance at one date. Include income only once it is held as cash or another asset.
Should I include my car?
You may include a reasonable resale value and the remaining car loan separately. Use a consistent approach each time you update your balance sheet.
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.