Net Worth Calculator
Use this free net worth calculator to estimate your current financial position by comparing the value of what you own with the amount you owe.
Enter your assets and liabilities to calculate your estimated net worth and see a breakdown of where your money is currently concentrated.
What Is Net Worth?
Net worth is the difference between your total assets and your total liabilities.
The basic formula is:
Net Worth = Total Assets − Total Liabilities
Assets are things you own that have financial value.
Liabilities are debts and balances you owe.
If your assets are greater than your liabilities, your net worth is positive.
If your liabilities are greater than your assets, your net worth is negative.
How to Use the Net Worth Calculator
Start by entering the approximate current value of your assets.
Then enter the balances of your debts and other liabilities.
The calculator includes fields for common categories such as:
- Cash and chequing
- Savings accounts
- Investments
- Retirement accounts
- Home value
- Vehicles
- Business ownership
- Other assets
- Mortgage balance
- Credit cards
- Student loans
- Vehicle loans
- Personal loans and lines of credit
- Tax debt
- Business debt
- Other liabilities
Select Calculate Net Worth to see your estimated result.
What Counts as an Asset?
An asset is something you own that has financial value.
Common examples include:
- Cash
- Money in bank accounts
- Investments
- Retirement accounts
- Real estate
- Vehicles
- Business ownership
- Other property or financial assets
The calculator uses the approximate current value you enter.
For assets such as homes, vehicles, or businesses, the exact market value may be difficult to determine.
Using a reasonable current estimate is usually more useful than entering the original purchase price.
What Counts as a Liability?
A liability is money you currently owe.
Common examples include:
- Mortgage balances
- Credit card balances
- Student loans
- Vehicle loans
- Personal loans
- Lines of credit
- Tax debt
- Business debt
- Other outstanding debts
Enter the current balance owed rather than the original amount borrowed.
Example Net Worth Calculation
Suppose someone has the following assets:
Cash and savings: $20,000
Investments and retirement accounts: $80,000
Home value: $350,000
Vehicle value: $25,000
Total assets:
$475,000
They also owe:
Mortgage: $250,000
Credit cards: $5,000
Vehicle loan: $15,000
Total liabilities:
$270,000
Estimated net worth:
$475,000 − $270,000 = $205,000
What Does a Positive Net Worth Mean?
A positive net worth means the value of your assets is greater than the amount you owe.
For example:
Assets: $300,000
Liabilities: $200,000
Estimated net worth:
$100,000
This does not necessarily mean you have $100,000 available to spend.
Some assets may be difficult to sell quickly, and selling them may involve taxes, fees, or other costs.
What Does a Negative Net Worth Mean?
A negative net worth means your liabilities are greater than the value of your assets.
For example:
Assets: $50,000
Liabilities: $80,000
Estimated net worth:
−$30,000
A negative net worth is not unusual in some stages of life, especially when someone has student loans, a mortgage, or other large debts.
Net worth can change as debts are paid down, savings increase, investments grow, or asset values change.
What Is the Asset-to-Liability Ratio?
The calculator also compares your total assets with your total liabilities.
For example, if you have:
$200,000 in assets
and:
$100,000 in liabilities
your asset-to-liability ratio would be approximately:
2.00 : 1
This means you have about $2 in assets for every $1 in liabilities.
This ratio is included as a general comparison and should not be interpreted as a financial health score.
How Is Home Equity Estimated?
If you enter both a home value and mortgage balance, the calculator estimates home equity using:
Home Equity = Home Value − Mortgage Balance
For example:
Home value: $400,000
Mortgage balance: $260,000
Estimated home equity:
$140,000
This is a simplified estimate.
Actual proceeds from selling a home may be lower after real estate commissions, legal costs, taxes, mortgage penalties, repairs, and other expenses.
Should I Include My Home in Net Worth?
You can include your home because it is an asset with financial value.
Your mortgage balance should then be included as a liability.
This provides a more complete picture of overall net worth.
However, some people also track a separate version of net worth that excludes their primary residence when focusing on investable assets.
Both approaches can be useful depending on what you are trying to measure.
Should I Include My Vehicle?
You can include the approximate current value of vehicles you own.
If you still owe money on a vehicle, enter the remaining vehicle loan separately as a liability.
Keep in mind that vehicles often lose value over time.
Should I Include Retirement Accounts?
Yes.
Retirement accounts generally have financial value and can be included as assets.
Examples may include:
- RRSPs
- TFSAs
- 401(k)s
- IRAs
- Other investment or retirement accounts
The calculator does not account for taxes, withdrawal restrictions, penalties, or differences between account types.
Should I Include My Business?
If you own a business that has a measurable financial value, you can enter an estimated value under business ownership.
Business valuation can be complicated, so this should be treated as a rough estimate unless you have a professional valuation.
If the business also has debt that would remain your responsibility, you can enter that separately under business debt.
What Should I Do With Personal Property?
You do not necessarily need to enter every item you own.
Furniture, electronics, clothing, and ordinary household items are often excluded because their resale value may be relatively small or difficult to estimate.
For higher-value property such as collectibles, valuable equipment, or other significant assets, you can use the Other Assets field.
Why Track Net Worth Over Time?
A single net worth number provides a snapshot.
Tracking it over time can be more useful because it shows whether your overall financial position is changing.
Net worth may increase when:
- Debt balances decrease
- Savings increase
- Investments grow
- Property values increase
- Additional assets are acquired
Net worth may decrease when:
- Debt increases
- Investments decline
- Assets lose value
- Savings are spent
Short-term changes are normal, especially when asset values fluctuate.
Net Worth vs. Income
Income and net worth measure different things.
Income is money you earn over a period of time.
Net worth measures the value of your assets minus your liabilities at a particular point in time.
Someone can have a high income but relatively low net worth if they also have high debt or limited savings.
Someone with a lower income may have a higher net worth after many years of saving and paying down debt.
Net Worth vs. Cash Flow
Cash flow measures money coming in and going out.
Net worth measures what you own compared with what you owe.
Your Monthly Budget Calculator can help you look at cash flow, while this calculator provides a snapshot of your overall financial position.
How Often Should I Calculate My Net Worth?
There is no required schedule.
Some people update their net worth:
- Monthly
- Quarterly
- Twice a year
- Annually
Updating it periodically can make it easier to see longer-term changes without focusing too heavily on normal short-term fluctuations.
Calculator Assumptions
The calculator assumes:
- The asset values entered are reasonable current estimates
- Liability amounts represent current balances owed
- All values are entered in the same currency
- No selling costs are deducted from asset values
- No taxes are deducted
- No early withdrawal penalties are included
- No investment fees are included
- No real estate commissions or legal costs are deducted
- No future investment growth is assumed
- No future debt payments are assumed
The calculator provides a snapshot based only on the amounts entered.
Frequently Asked Questions
Can my net worth be negative?
Yes.
A negative net worth simply means your current liabilities are greater than your current assets.
The number can change as debts are reduced and assets increase.
Is net worth the same as how much cash I have?
No.
Net worth can include assets such as a home, investments, retirement accounts, and vehicles.
Those assets may not be immediately available as cash.
Should I use the purchase price or current value of an asset?
Use an approximate current value when possible.
The amount originally paid for an asset may be very different from what it is worth today.
Should my mortgage be subtracted from my home value?
Yes.
Enter the full estimated home value as an asset and the outstanding mortgage balance as a liability.
The calculator will also show an estimated home equity amount.
Do I include credit card balances that I pay off every month?
If there is currently an outstanding balance, you can include it.
For a net worth snapshot, the goal is to compare what you own and owe at that particular point in time.
Should I include pensions?
It depends on whether there is a clear current account value.
Defined-contribution accounts with a visible balance may be easier to include.
Defined-benefit pensions can be much harder to value accurately, so this calculator does not attempt to estimate them.
What currency should I use?
You can use Canadian dollars, U.S. dollars, or another currency as long as every amount is entered using the same currency.
The calculator displays a dollar symbol for simplicity.
Does a higher net worth always mean better financial health?
Not necessarily.
Net worth is only one financial measurement.
Cash flow, emergency savings, debt costs, income stability, insurance, taxes, liquidity, and other factors can also be important.
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Coming soon:
- 50/30/20 Calculator
- Debt Snowball Calculator
- Debt Avalanche Calculator
Financial Disclaimer
Budget & Freedom provides calculators and educational information for general informational purposes only.
Calculator results are estimates based on the information entered and should not be considered financial, investment, tax, accounting, legal, or valuation advice.
Actual asset values, debt balances, taxes, fees, selling costs, market conditions, and financial circumstances may differ from the amounts shown.
By Laura Bennett