How To Calculate Your Net Worth | Net Worth Calculator

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Calculating your net worth is as simple as adding all assets and all liabilities and subtracting your liabilities from your assets.

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Partial Transcript:

Today we are going to talk about calculating net worth. Everyone with any financial responsibility about them should know their net worth. The concept of net worth is a very simple one. It is simply a person’s total assets minus their total liabilities. If you aren’t familiar with the concept of assets and liabilities, here’s what they are. Assets are anything that if you sold it, would have a positive value. And any amount of debt that a person owes, is considered a liability.

Looking at the list in this net worth calculator, these are the most common assets that people have. Your home, autos, IRAs, investment accounts, cash value life insurance, savings, precious metals, and real estate investments are a few things that if you own, would be considered an asset.

A liability would be anything that is a debt. This would include debt on your home, auto debt, student debt, credit card debt or any other type of debt you may owe someone.

If you own a home with a mortgage, then you would count the total value of the home as an asset and the amount of the mortgage would be entered as the debt. This can sometimes be confusing to people calculating their net worth for the first time.

This net worth calculator adds up the total assets and presents them to you in a donut chart with the total amount of assets added up in the middle.

Then it adds up the total liabilities and presents them to you in a donut chart as well so that you can see where your liabilities lie by percentage.