account_balance WEALTH TOOLS

Net Worth Calculator

The true measure of financial health. Assets - Liabilities.

Assets (What you own)

Liabilities (What you owe)

How It Works: Calculates your total net worth by subtracting total liabilities from total assets.

Key Inputs:
  • Assets: Cash, Investments, Real Estate, Vehicles.
  • Liabilities: Mortgages, Loans, Credit Card Debt.


Formula: Net Worth = Total Assets - Total Liabilities.
Total Assets
$440,000
Total Liabilities
$322,000
Net Worth
$118,000

Why Track Net Worth?

Your Net Worth is the single most important number in personal finance. Income tells you how much you make, but net worth tells you exactly where you stand financially.

Assets vs. Liabilities

Assets put money in your pocket (Investments, Real Estate) or have resale value.
Liabilities take money out of your pocket (Loans, Credit Card Debt).
To grow your net worth, you must simultaneously increase assets while decreasing liabilities.

Liquid vs. Illiquid Net Worth

It's important to distinguish between "Paper Wealth" (like home equity) and "Liquid Wealth" (Cash, Stocks). You can't pay for groceries with your house. A healthy financial plan balances both.