Calculate Your Net Worth

Net Worth Calculator

Your Assets

Enter the current market value of everything you own.

Your Liabilities

Enter the outstanding balances of everything you owe.

function calculateNetWorth() { // Get Asset values var cashSavings = parseFloat(document.getElementById('cashSavings').value) || 0; var investments = parseFloat(document.getElementById('investments').value) || 0; var realEstateValue = parseFloat(document.getElementById('realEstateValue').value) || 0; var vehicleValue = parseFloat(document.getElementById('vehicleValue').value) || 0; var otherAssets = parseFloat(document.getElementById('otherAssets').value) || 0; // Get Liability values var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value) || 0; var creditCardDebt = parseFloat(document.getElementById('creditCardDebt').value) || 0; var studentLoanDebt = parseFloat(document.getElementById('studentLoanDebt').value) || 0; var carLoanDebt = parseFloat(document.getElementById('carLoanDebt').value) || 0; var otherDebts = parseFloat(document.getElementById('otherDebts').value) || 0; // Calculate Total Assets var totalAssets = cashSavings + investments + realEstateValue + vehicleValue + otherAssets; // Calculate Total Liabilities var totalLiabilities = mortgageBalance + creditCardDebt + studentLoanDebt + carLoanDebt + otherDebts; // Calculate Net Worth var netWorth = totalAssets – totalLiabilities; // Display Result var resultDiv = document.getElementById('netWorthResult'); if (isNaN(netWorth)) { resultDiv.innerHTML = "Please enter valid numbers for all fields."; resultDiv.style.backgroundColor = '#ffe6e6'; // Light red for error resultDiv.style.borderColor = '#d9534f'; // Red border for error } else { resultDiv.innerHTML = "Your Estimated Net Worth: $" + netWorth.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + ""; resultDiv.style.backgroundColor = '#e6ffe6'; // Light green for success resultDiv.style.borderColor = '#28a745'; // Green border for success } } // Run calculation on page load to show initial values document.addEventListener('DOMContentLoaded', function() { calculateNetWorth(); });

Understanding Your Net Worth

Your net worth is a fundamental indicator of your financial health. Simply put, it's the total value of everything you own (your assets) minus everything you owe (your liabilities). Calculating your net worth regularly provides a clear snapshot of your financial standing at a given moment and helps you track your progress towards financial goals.

What Are Assets?

Assets are anything you own that has monetary value. They can be categorized into liquid assets (easily converted to cash) and illiquid assets (harder to convert quickly). Common assets include:

• Cash & Savings Accounts: Money in checking, savings, and money market accounts.
• Investments: Stocks, bonds, mutual funds, exchange-traded funds (ETFs), 401(k)s, IRAs, and other retirement accounts.
• Real Estate: The current market value of your primary residence, rental properties, or any other land you own.
• Vehicles: The current market value of your cars, motorcycles, boats, or other transportation.
• Other Valuables: Jewelry, art, collectibles, valuable electronics, or other personal property.

When calculating your assets, it's crucial to use the current market value, not what you originally paid for them.

What Are Liabilities?

Liabilities are your financial obligations or debts – money you owe to others. These can include:

• Mortgage Balance: The outstanding amount on your home loan(s).
• Credit Card Debt: Any balances you carry on your credit cards.
• Student Loan Debt: The remaining balance on your student loans.
• Car Loan Balance: The outstanding amount on your vehicle loans.
• Other Loans/Debts: Personal loans, medical bills, payday loans, or any other money you owe.

For liabilities, you should use the exact outstanding balance as of the calculation date.

How to Calculate Net Worth

The formula is straightforward:

Net Worth = Total Assets – Total Liabilities

Example Calculation:

Let's consider a hypothetical individual:

Assets:

• Cash & Savings: $10,000
• Investments: $150,000
• Real Estate Value: $300,000
• Vehicles: $25,000
• Other Valuables: $5,000
• Total Assets: $490,000

Liabilities:

• Mortgage Balance: $200,000
• Credit Card Debt: $5,000
• Student Loan Debt: $20,000
• Car Loan Balance: $10,000
• Other Debts: $2,000
• Total Liabilities: $237,000

Net Worth = $490,000 – $237,000 = $253,000

Why Track Your Net Worth?

• Financial Health Check: It gives you a clear picture of where you stand financially.
• Goal Setting: Helps you set and track progress towards financial goals like retirement, buying a home, or achieving financial independence.
• Motivation: Seeing your net worth grow can be a powerful motivator to save more and reduce debt.
• Estate Planning: Essential for understanding your overall wealth for estate planning purposes.

Improving Your Net Worth

To increase your net worth, you essentially have two main strategies:

1. Increase Your Assets:
   • Save more money consistently.
   • Invest wisely in appreciating assets like stocks, real estate, or retirement accounts.
   • Increase your income through raises, side hustles, or career advancement.
2. Decrease Your Liabilities:
   • Pay down high-interest debt (like credit cards) aggressively.
   • Refinance loans to lower interest rates.
   • Avoid taking on unnecessary new debt.

Regularly using a net worth calculator and reviewing your financial situation can empower you to make informed decisions and build a stronger financial future.