Short answer
List every asset at today's resale value, list every debt at its full outstanding balance, add up each list and subtract: net worth = total assets − total liabilities. In the example below, $583,100 of assets minus $376,100 of debts gives a net worth of $207,000. Record the date and repeat monthly.
The formula
Net worth = total assets − total liabilities
The subtraction is the easy part. The result depends on two choices you make before it: what goes on each list, and what value each line gets. If the definition itself is new, start with what net worth is.
Calculate net worth in 5 steps
- Gather statements. Bank and savings accounts, credit cards, mortgage, car and student loans, pension or 401(k)/RRSP, brokerage and crypto accounts. Use balances from the same date where you can.
- List assets at current value. Use the rules in the table below. When unsure, pick the lower estimate.
- List liabilities at the full balance. The amount you would need to pay off today, including a card you clear every month.
- Subtract. Total assets minus total liabilities. A negative result is common with student loans or a recent car loan.
- Date it and repeat. Write down the date. The second and third calculations matter more than the first, because they show direction — see tracking net worth over time.
Which value to use for each item
| Item | Value to use | Common mistake |
|---|---|---|
| Bank accounts | Balance on the snapshot date | Mixing dates across accounts |
| Investments | Quantity × current market price | Using what you paid |
| Retirement accounts | Current balance | Leaving them out, or switching between pre- and after-tax views |
| Home | Conservative resale estimate | Purchase price or the highest online estimate |
| Car | Private-sale value today | Purchase price |
| Furniture, electronics | Leave out unless clearly sellable | Counting replacement cost |
| Mortgage and loans | Full outstanding principal | Using the monthly payment |
| Credit cards | Current balance | Skipping cards paid in full |
Worked example
A couple with a house, a car and retirement savings, all figures on 1 October:
| Assets | Value | Liabilities | Balance |
|---|---|---|---|
| Chequing | $4,200 | Mortgage | $352,000 |
| Savings | $11,500 | Car loan | $9,800 |
| TFSA / Roth IRA | $23,800 | Credit card | $1,900 |
| Workplace pension / 401(k) | $41,000 | Student loan | $12,400 |
| Brokerage account | $8,600 | ||
| Home (resale estimate) | $480,000 | ||
| Car (resale) | $14,000 | ||
| Total assets | $583,100 | Total liabilities | $376,100 |
$583,100 − $376,100 = $207,000 net worth
Two ratios that make the total readable
Debt-to-asset ratio
Total liabilities ÷ total assets = $376,100 ÷ $583,100 = 64.5%
This is the usual answer to “how do I calculate my net worth ratio”. It shows how much of what you own is financed by debt. With a new mortgage it is high; it should fall over the years as the mortgage shrinks and savings grow.
Liquid net worth
(Cash + taxable investments) − short-term debts = ($4,200 + $11,500 + $8,600) − $1,900 = $22,400
Definitions vary; this one counts only money you could reach within days without penalties, minus debts due soon. The example household is worth $207,000 on paper, and $22,400 of it is reachable quickly — the figure that matters in an emergency. See how much emergency fund you need.
Let the app do the adding every month
Finman totals accounts, investments, goals, property and debts in your base currency and keeps each snapshot, so the next calculation is one click.
Calculate my net worth in FinmanMistakes that distort the result
- Optimistic house value. A high estimate can hide years of real progress or decline. Pick a cautious figure and change it rarely.
- Forgotten debts. Buy-now-pay-later plans, a family loan, tax owed.
- Mixed currencies. Accounts in two currencies need converting at one rate on one date — see multi-currency budgeting.
- Changing the method. Switching between pre-tax and after-tax pension values makes the trend jump for no real reason.
Calculate it automatically
For a one-off figure, the net worth calculator takes your assets and debts and does the sum. To repeat it monthly without retyping, a net worth tracker reads balances already in the app. In Finman, accounts, investments (priced from Stooq), savings goals and manual assets such as property are added up, debts are subtracted at their remaining balance, every amount is converted to your base currency, and “Save snapshot” stores the result for the trend chart.
Frequently asked questions
How do you calculate net worth?
Add up the current value of everything you own, add up the full balance of everything you owe, and subtract the second total from the first. Net worth = total assets − total liabilities.
What is the net worth formula?
Net worth = total assets − total liabilities. Assets are valued at what they would sell for today; liabilities at the full amount still owed.
Should I use the purchase price or the current value of my house?
Use a conservative estimate of what it would sell for today, based on recent sales of similar homes. Some people subtract estimated selling costs too. Whatever you choose, use the same method every time.
How do I calculate my net worth ratio?
The common one is the debt-to-asset ratio: total liabilities divided by total assets. In the worked example, $376,100 ÷ $583,100 = 64.5%. A falling ratio means debts are shrinking relative to what you own.
Should retirement accounts count in net worth?
Yes, at their current balance. If you will pay tax when you withdraw, you can note that the after-tax value is lower, but keep the method consistent between snapshots.
How often should I calculate net worth?
Monthly is enough for most people, on the same date each time. Quarterly works if your finances change slowly.
From one calculation to a monthly habit
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