How to Calculate Net Worth

You can calculate your personal net worth.

Personal net worth is a number everyone should all know. Regularly calculating your net worth is a way to get a picture of your financial health, and it can help you make and stay on track with financial goals. The calculation itself is not complicated, but determining the value of what you own, your assets, and what you owe, your liabilities can take some time.

Difficulty:

Moderately Easy

Instructions

1. Get organized. In order to calculate net worth, you will need to gather all of your financial documents. This includes bank statements, 401k and IRA statements, mortgage documents, credit card statements and other documents that state the value of what you own.

2. Add up your assets. Simply add together everything you own, including cash savings, 401k and IRA accounts, investment account funds, the current value of your home. You also can include any valuables such as jewelry, cars, artwork and other items you have of value.

3. Total your liabilities. Simply add together everything you owe, including credit card debt, your mortgage, car loans, home equity loans and student loans.

4. Calculate net worth. Net worth is a simple calculation that compares your assets to your liabilities. Subtract your liabilities from your assets and you've got a snapshot of your net worth.

Tips & Warnings

• You can find net worth calculators and worksheets online that can help you organize and itemize your assets and liabilities.

References

• Brigham Young University: Calculate Your Net Worth Using a Personal Balance Sheet

Resources

• CNN Money: Net Worth Calculator