How to Calculate Personal Net Worth

Your personal net worth is a monetary figure that is calculated by subtracting your total liabilities from your total assets. By calculating your net worth over time, you can use the net worth figure as a benchmark of your overall financial health. To calculate your personal net worth, you will need to gather all of your financial statements and ledgers for all of your assets and liabilities.

Things You'll Need

• Financial statements
• Billing statements

Instructions

1. Calculate the sum of your assets--called your total assets. Include all fixed assets such as houses and cars and liquid assets such as cash, stocks and bonds. Look at financial statements to get current balances for many accounts such as a checking account, stock account or life insurance policy. For other assets such as a house or a car, estimate the current market value.

2. Calculate the sum of all of your liabilities or debts. You can get this information from the individual billing statement from each account or debt.

3. Subtract your total liabilities (calculated in Step #2) from your total assets (calculated in Step #1). The resulting figure is your personal net worth.

Tips & Warnings

• If you have more liabilities than assets, you have a negative net worth.

References

• Personal Dividends: Calculating Your Net Worth