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Net Worth Calculator
Your Current Financial Status
Financial Health Check
Your net worth is the single most important measure of your financial health.
The Importance of the Net Worth Calculation
The **Net Worth Calculator** provides a snapshot of your **personal financial health** by quantifying the difference between your **total assets** (what you own) and your **total liabilities** (what you owe). Tracking your **net worth** is the foundation of **financial analysis** and is the most honest measure of your wealth. A **positive net worth** means your assets exceed your debts; a **negative net worth** means you owe more than you own.
Understanding Assets and Liabilities
The calculation uses the fundamental accounting equation: $$\text{Net Worth} = \text{Total Assets} - \text{Total Liabilities}$$
- **Total Assets:** Includes easily liquid funds (cash, savings, investments), retirement funds, and the equity portion of property (**Real Estate Equity** = Market Value - Mortgage Debt).
- **Total Liabilities:** Includes all forms of **debt**—mortgages, **credit card debt**, student loans, and auto loans.
Financial Health and Debt-to-Equity Ratio
Monitoring your **net worth** growth over time is key to **personal finance tracking**. Consistent positive growth indicates sound financial decision-making. You can use the results here in conjunction with the **Debt-to-Income Ratio (DTI)** calculator to get a complete view of your **financial health**, ensuring that your **total liabilities** are manageable relative to your income.
Net Worth Calculator FAQs
**Income** is money earned over a period (salary). **Net worth** is a snapshot of wealth at a single point in time, measuring your **total assets** minus **total liabilities**. You can have high income but a low or even **negative net worth** if your **debt** is high.
**Real Estate Equity** is calculated by taking the current market value of your property and subtracting the remaining balance of your **mortgage debt**. This is the only portion of your home that should be counted toward **total assets**.
A **negative net worth** is common for younger adults or those carrying high student loan **debt**. It means your **total liabilities** exceed your **total assets**. While not ideal, consistent growth toward a **positive net worth** shows strong progress in **personal finance tracking**.