Net worth calculator

What net worth actually measures

Net worth is a balance sheet in a single number: total assets minus total liabilities, valued on one date. It says nothing about how much you earn, how you spend, or how quickly the money could be turned into cash. A household with a paid-off apartment and a small pension can show a higher figure than a household with a larger salary, a leased car and credit card balances.

That is why we publish a valuation date next to every estimate on this site. The number is a photograph, not a film, and comparing two photographs taken on different days can mislead even when both were accurate when taken.

How to value the difficult parts

Cash and listed investments are easy, because a market price exists. Property is harder: use a recent sale price for a comparable unit rather than the asking price of the flat down the street, and subtract selling costs if you want the number a buyer would actually leave you with.

Business stakes cause the widest errors. A profitable company with several employees and no dependence on its founder is worth several times annual profit. The same company with one client and a founder who does all the selling is worth far less to anyone else, and should be discounted accordingly.

Consumer goods rarely survive the exercise. Cars lose value every month and jewellery sells for a fraction of retail, so include them only if the figure matters to your plan.

Questions about the calculator

Is net worth the same as income?

No. Income is what comes in during a year, net worth is what is left when everything you own is set against everything you owe on one day. Someone can earn a high salary and still have a low net worth if the money goes out as fast as it arrives, and someone with a modest salary can build a high one over decades.

Should I include my home in net worth?

Include the market value of the home and subtract the mortgage balance, which is what the calculator does. The result is accurate but illiquid: you cannot spend a house. Many people also track net worth without property to see the money they could actually access.

How do I value a private business?

Use a defensible number rather than a hopeful one. A common starting point is a multiple of annual profit, adjusted for what a buyer would pay for a minority stake without control. If the business is small and dependent on you personally, discount it heavily, because the value does not transfer without you.

How often should I recalculate?

Once a quarter is enough for most people, and once a year is enough if your situation is stable. Recalculating weekly mostly adds noise, because listed investments and property estimates move constantly while the structure of your balance sheet changes slowly.

Does this calculator save my figures?

Only in your own browser, so you can come back to the numbers later on the same device. Nothing is transmitted to us, no account is required, and clearing the fields removes the saved values.