How to Calculate Your Net Worth (With Examples)

Your net worth is the most important number in personal finance, and calculating it takes about 15 minutes. Yet most people have never done it. If that is you, this guide will walk you through the formula, what to include, what to leave out, and give you concrete examples so you can calculate your own number today.

The Net Worth Formula

The formula is straightforward:

Net Worth = Total Assets - Total Liabilities

Assets are everything you own that has monetary value. Liabilities are everything you owe. Subtract the second from the first, and you have your net worth. It can be positive, zero, or negative — all of those are valid starting points.

What Counts as an Asset

An asset is anything you own that could be converted to cash. Here is a comprehensive list organized by category:

Cash and Cash Equivalents

• Checking accounts
• Savings accounts
• Money market accounts
• Certificates of deposit (CDs)
• Cash on hand (if significant)

Investment Accounts

• Taxable brokerage accounts (stocks, bonds, ETFs, mutual funds)
• Retirement accounts: 401(k), 403(b), Traditional IRA, Roth IRA, SEP IRA
• Health Savings Accounts (HSA) with invested balance
• 529 education savings plans
• Cryptocurrency holdings

Real Estate

• Primary residence (current estimated market value)
• Rental or investment properties
• Land

Other Assets

• Vehicles (current resale value, not purchase price)
• Business ownership or equity stakes
• Vested stock options or RSUs (after-tax value)
• Valuable personal property with verifiable market value (jewelry, art, collectibles)
• Cash value of permanent life insurance policies

What Counts as a Liability

A liability is any debt or financial obligation you owe. Include everything:

Secured Debts

• Mortgage balance (remaining principal)
• Home equity loan or HELOC balance
• Auto loan balance

Unsecured Debts

• Credit card balances (the statement balance you carry)
• Personal loans
• Medical debt
• Tax debt owed to the IRS or state

Student Loans

• Federal student loans (all types)
• Private student loans

Other Liabilities

• Money owed to family or friends (if you genuinely plan to repay it)
• Business debts you are personally liable for
• Outstanding legal judgments

Worked Examples

Example 1: Recent College Graduate

Alex is 24, two years out of college, working as a junior developer.

Assets:

• Checking account: $3,200
• Savings account: $8,500
• 401(k): $6,800
• Car value: $12,000

Total assets: $30,500

Liabilities:

• Student loans: $28,000
• Auto loan: $9,500
• Credit card balance: $1,200

Total liabilities: $38,700

Net worth: $30,500 - $38,700 = -$8,200

A negative net worth is completely normal early in a career, especially with student debt. The important thing is tracking the direction — if Alex is paying down debt and contributing to their 401(k), this number should climb steadily each month.

Example 2: Mid-Career Professional

Maria is 35, married, ten years into her career as a marketing director.

Assets:

• Joint checking: $7,500
• Joint savings: $25,000
• Maria's 401(k): $95,000
• Maria's Roth IRA: $32,000
• Taxable brokerage: $18,000
• Home value: $380,000
• Two cars: $28,000

Total assets: $585,500

Liabilities:

• Mortgage: $295,000
• Auto loan: $14,000
• Student loan (remaining): $8,000

Total liabilities: $317,000

Net worth: $585,500 - $317,000 = $268,500

Note that Maria's home is her biggest asset but also her biggest liability (through the mortgage). This is normal for homeowners. The equity — the difference between the home value and the mortgage balance — is what contributes to net worth.

Example 3: Nearing Retirement

David is 58, planning to retire at 62.

Assets:

• Checking and savings: $45,000
• 401(k): $620,000
• Traditional IRA (rollover): $180,000
• Taxable investments: $210,000
• Home value: $520,000
• Rental property: $280,000
• Car: $15,000

Total assets: $1,870,000

Liabilities:

• Mortgage (primary): $110,000
• Mortgage (rental): $165,000

Total liabilities: $275,000

Net worth: $1,870,000 - $275,000 = $1,595,000

David has a strong position, but note that a large portion of his assets are in tax-deferred retirement accounts. When planning for retirement income, the tax implications of withdrawals matter — but for net worth calculation purposes, you include the full pre-tax balance.

What NOT to Include

Some things feel like they should count but do not belong in a net worth calculation:

• Future income or expected raises. Your salary is not an asset. It becomes one only after you earn it and save it.
• Social Security benefits. These have value, but they are not liquid and cannot be transferred. Leave them out.
• Pension promises. Similar to Social Security — until the money is in your account, it is a projection, not an asset.
• Household items at retail value. Your furniture, electronics, and clothing depreciate rapidly. Do not add $2,000 because you paid that much for a couch three years ago. Most household items have negligible resale value.
• Unvested stock options or RSUs. Only include equity compensation that has actually vested. Unvested grants can be rescinded if you leave the company.
• Monthly bills. Your electric bill and Netflix subscription are expenses, not liabilities. Only include actual debts — money you borrowed and must repay.

Tips for Accurate Calculation

• Use real numbers. Log into each account and get the actual balance. Do not estimate from memory — people consistently overestimate assets and underestimate debts.
• Be conservative with property values. Check recent comparable sales in your area, not Zillow's optimistic "Zestimate." If you would not bet money on the number, it is too high.
• Include your car at resale value. Check Kelley Blue Book or a similar service for a realistic private-party sale price.
• Use the statement balance for credit cards. If you pay your balance in full each month, your credit cards are not a liability — they are a payment method. Only include balances you carry.
• Do it on the same day each month. Consistency matters. Picking the first of the month and always using that date makes your trend line meaningful. Read our guide on monthly tracking for more on building this habit.

How Totala Helps

Calculating your net worth once is useful. Tracking it every month is transformative. Totala makes the monthly process painless:

• Structured accounts: Add each asset and liability as its own account with a type (cash, investment, property, loan, etc.). Totala keeps them organized and sums everything automatically.
• Stock and ETF tracking: For investment accounts, you can enter your holdings and Totala pulls live market prices — no need to manually look up values each month.
• Monthly confirmation: On the first of each month, Totala shows you each account with its previous balance. Confirm the ones that have not changed, update the ones that have. The whole process takes under 10 minutes.
• Visual trend: See your net worth plotted over time. Watch the line go up. That is the motivation loop that keeps you tracking.
• No bank connections needed: Your data stays private. No third-party access to your accounts. Learn more about why this approach is better.

Create a free account and calculate your net worth in Totala today, or try the demo first.

What to Do After You Calculate Your Net Worth

Once you have your number, resist the urge to judge it. Whether it is positive or negative, the act of calculating it puts you ahead of most people. Here is what to do next:

• Write it down with today's date. This is your baseline. Everything from here is progress.
• Set a calendar reminder for next month. The value of net worth tracking comes from the trend, not the snapshot.
• Identify one thing to improve. Maybe it is paying off a high-interest credit card, increasing your 401(k) contribution by 1%, or building an emergency fund. One change at a time.
• Read our complete guide to tracking net worth for a broader perspective on building a long-term tracking system.

The hardest part is done. You know your number. Now keep tracking it — and watch it grow.