How to calculate net worth
Assets minus liabilities equals net worth. List everything at current value, including bank balances, investments, retirement accounts, the home, vehicles, and personal property. Then subtract every debt: mortgage, auto, student, cards, and personal loans.
A positive number means you own more than you owe. A negative number is common early in a career and should improve as debt falls and assets grow. Track it quarterly or annually; the trend matters more than any single snapshot.
Home equity matters
For most owners, the home is the largest asset and the mortgage is the largest liability. Equity is the difference, and it grows through appreciation and principal paydown. Keep an eye on liquid net worth too, since home equity is hard to access in an emergency.
Estimates for planning only. Actual results depend on your market, lender, and personal circumstances. Confirm important decisions with a qualified professional.
