How to Calculate Your Net Worth (And Why It Matters)
Published Apr 14, 2026 · 5 min read
Your net worth is the single most important number in personal finance. It's not how much you earn — it's how much you keep. Net worth = total assets minus total liabilities.
What Counts as Assets
| Category | Examples |
|---|---|
| Cash & equivalents | Checking, savings, money market, CDs |
| Investments | Stocks, bonds, mutual funds, ETFs, crypto |
| Retirement | 401(k), IRA, Roth IRA, pension value |
| Real estate | Home value, rental properties |
| Other | Cars (current value), business equity, valuables |
What Counts as Liabilities
- Mortgage balance
- Student loans
- Auto loans
- Credit card balances
- Personal loans
- Medical debt
- Any other money you owe
Net Worth by Age (U.S. Median)
| Age | Median Net Worth |
|---|---|
| Under 35 | $39,000 |
| 35-44 | $135,600 |
| 45-54 | $247,200 |
| 55-64 | $364,500 |
| 65-74 | $409,900 |
Source: Federal Reserve Survey of Consumer Finances (2022).
How to Track It
- Calculate it once per quarter — monthly changes cause unnecessary stress
- Focus on the trend, not the number
- Don't count depreciating assets like cars too generously
- Include your home equity (value minus mortgage balance)
Try it: Use our Net Worth Calculator to add up everything and see where you stand.