Net Worth Calculator
Your net worth is the single best snapshot of your financial health. Add up everything you own, subtract everything you owe, and see the number that matters most.
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Why Net Worth Matters More Than Income
Income tells you how much money flows in each month. Net worth tells you how much wealth you've actually built. Someone earning $200,000 per year but spending it all has a lower net worth than someone earning $60,000 who consistently saves and invests.
Net worth grows through two mechanisms: increasing assets (saving, investing, property appreciation) and decreasing liabilities (paying off debt). The most effective wealth builders work both levers simultaneously.
Tracking your net worth quarterly or annually reveals trends that income alone cannot show. A rising net worth, even if slow, means your financial decisions are working. A flat or declining net worth signals the need for change.
How to Increase Your Net Worth
The asset side has more potential than the debt side. While paying off debt is important, the biggest net worth gains come from growing investments. Stock market returns have historically averaged about 10% per year, and compound interest accelerates growth dramatically over decades.
Maximize contributions to tax-advantaged accounts like 401(k)s and IRAs first. The tax savings alone boost your effective return. After maxing those, invest additional savings in a diversified brokerage account.
On the liability side, prioritize high-interest debt first. Credit card debt at 20%+ interest erodes net worth faster than almost anything. Mortgage debt at 3-7% is less urgent because the property itself is an asset that typically appreciates.
Net Worth Benchmarks by Age
Average net worth statistics can be misleading because extremely wealthy individuals pull the average up. The median (50th percentile) gives a better picture. In the US, median net worth for households under 35 is about $39,000, rising to $91,000 for ages 35-44.
By ages 45-54, the median reaches roughly $168,000. Ages 55-64 see it jump to about $213,000, and those 65-74 have a median around $266,000. These figures include home equity, which is often the largest single asset.
Rather than comparing yourself to national averages, focus on your personal trend. Are you growing your net worth each year? Are you on track for your retirement goals? A personalized target based on your income, expenses, and retirement age matters more than any general benchmark.
Frequently Asked Questions
What is net worth?
Net worth is total assets minus total liabilities. It represents the value of everything you own after paying off everything you owe. A positive net worth means your assets exceed your debts.
What should I include in assets?
Include cash, checking and savings accounts, investment accounts (401k, IRA, brokerage), real estate market value, vehicles, jewelry, and any other valuable property.
What counts as a liability?
Include mortgages, car loans, student loans, credit card balances, personal loans, medical debt, and any other money you owe.
What is a good net worth by age?
A common benchmark: by age 30, aim for 1x your annual salary saved. By 40, aim for 3x. By 50, aim for 6x. By 60, aim for 8x. The median US net worth for ages 35-44 is about $91,000.
Can net worth be negative?
Yes. Many young adults have negative net worth due to student loans. This is normal and temporary as long as you're working to pay down debt and grow your savings.