How is net worth calculated?
Net worth = total assets − total liabilitiesAdd up everything you own at today's value, then subtract everything you owe at today's balance. That's the same formula a company's balance sheet uses, where it's called owners' equity. The example below is $510,000 minus $290,000, which equals $220,000.
| What you own | Value | What you owe | Balance |
|---|---|---|---|
| Cash and savings | $15,000 | Mortgage | $260,000 |
| Taxable investments | $20,000 | Car loan | $9,000 |
| 401(k) and other pre-tax accounts | $85,000 | Student loan | $18,000 |
| Roth accounts | $25,000 | Credit card | $3,000 |
| Home | $350,000 | ||
| Car | $15,000 | ||
| Total | $510,000 | Total | $290,000 |
What should you count, and at what value?
Use what each thing would sell for today, not what you paid. That rule changes more numbers than you'd expect.
- Home: a realistic sale price, based on recent nearby sales. Your home equity here is $90,000, the value minus the mortgage.
- Vehicles: the resale value, not the purchase price. A car bought with a loan can be worth less than you owe.
- Pre-tax retirement accounts: the full balance is the usual figure, though you'll generally owe income tax on withdrawals. At a 22% example rate, the $85,000 here holds about $18,700 of future tax. Advanced options show net worth after that.
- Business: a fair sale value, which can be hard to pin down. Be conservative.
- Skip: clothes, furniture, and other things that wouldn't bring much. Also skip income you expect but haven't received.
- Couples: enter everything you own and owe together, or run it once each. Compare like with like, since the survey below counts whole families.
Pensions and Social Security aren't in this total. The Federal Reserve leaves them out of its survey assets too, because their value depends on assumptions about future work, inflation, and how long you live. If you have a pension, you may be better off than this number suggests. Our retirement calculator can include that income.
What is the median net worth by age?
The median US family had a net worth of $215,900 in the Federal Reserve's 2025 Survey of Consumer Finances, published in October 2026. The average was $1,241,500. The gap shows why the median is the better guide: very wealthy families pull the average far above the typical family.
| Age | Median | Average |
|---|---|---|
| Under 35 | $33,000 | $135,400 |
| 35 to 44 | $155,600 | $681,900 |
| 45 to 54 | $253,700 | $1,244,500 |
| 55 to 64 | $411,900 | $1,878,000 |
| 65 to 74 | $431,300 | $1,897,600 |
| 75 or older | $504,900 | $1,962,200 |
| Percentile | Net worth at that point |
|---|---|
| 25th | $27,900 |
| 50th | $215,900 |
| 75th | $812,800 |
| 90th | $2,539,200 |
The example household's $220,000 is between the 50th and 75th percentiles. Treat these as context, not targets. A survey is a snapshot of different families at one time, not one family's path through life, and it reports families, so a single person comparing with a couple's figure isn't a fair match. Those tables also don't adjust for where you live or what you earn, and your own progress over time is a better measure.
What is liquid net worth?
It's the part you could reach soon without selling your home or paying a retirement penalty. This calculator counts cash and taxable investments, then subtracts debts not backed by a home or car. The example household has $35,000 of liquid assets and $21,000 of those debts, for a liquid net worth of $14,000.
There's no single standard definition. A stricter version subtracts every debt, which here gives -$255,000. A lender may use its own rules, so ask what it counts. You can switch to the stricter version under advanced options.
Here's the trap. Net worth can look healthy while cash is short. In this example, 69% of assets are in the home, and only 7% are liquid. A job loss wouldn't change the net worth that day, but it would test the liquid part. Our emergency fund calculator can size that cushion.
What is a good debt-to-asset ratio?
Divide total debts by total assets. The example is $290,000 divided by $510,000, or 56.9%. Above 100%, you owe more than you own. There's no official good number, but you can compare it with the Federal Reserve's measure: among families with debt, the median ratio of debt to assets was 26.9% in 2025.
This ratio can be high for a new homeowner or a recent graduate, because a large loan comes first and the assets build later. It also says nothing about whether you can afford the payments, which is what a debt-to-income ratio checks. To bring it down, our debt payoff calculator compares ways to clear what you owe.
How will my net worth grow over time?
Three things move it: what you save, what you pay off, and what your assets do. With $750 saved and $800 of principal paid each month, the example reaches $652,274 in 10 years. That change breaks down as $90,000 from savings, $96,000 from debt paid, and $246,274 from changes in asset values.
| Saved a month | In 5 years | In 10 years | In 20 years | In 30 years |
|---|---|---|---|---|
| $0 | $360,932 | $530,419 | $973,937 | $1,621,481 |
| $250 | $378,303 | $571,037 | $1,087,297 | $1,865,109 |
| $500 | $395,675 | $611,656 | $1,200,656 | $2,108,737 |
| $750 | $413,046 | $652,274 | $1,314,016 | $2,352,365 |
| $1,000 | $430,418 | $692,892 | $1,427,376 | $2,595,994 |
| $2,000 | $499,904 | $855,366 | $1,880,814 | $3,570,507 |
The projection is only as good as its rates. Home values can fall, returns vary, and a car usually loses value. Try the what-ifs to see how much depends on growth you can't control, compared with savings you can. Selling costs and capital gains tax aren't included, so the amount you could actually spend would be lower.
A fee-only financial planner or a nonprofit credit counselor can review your full picture. For more on how savings grow, read how compound growth really works.
Common questions
Does my home count toward net worth?
Yes. Count the home's value as an asset and the mortgage as a debt. The calculator also shows your net worth without home equity, since you can't spend it without selling or borrowing.
Is a negative net worth bad?
It means you owe more than you own today. It says nothing about your income or your future, and new student or home loans can cause it. Watch whether the figure rises over time.
What percentile am I in?
The calculator compares your figure with the Federal Reserve's 2025 cut points. At $215,900 you'd be at the median of all families, and $2,539,200 marks the 90th percentile. These count whole families of all ages.
Should I include my 401(k)?
Yes, at its current balance. It's usually listed in full, but withdrawals from pre-tax accounts are generally taxed as income, so advanced options let you see net worth after an estimated tax rate.
How often should I check my net worth?
That's up to you. Since markets and home values move, checking once or twice a year on the same date gives you a fair trend without daily noise. You can download your balance sheet as a CSV to keep a record.
Sources
- Changes in U.S. Family Finances from 2022 to 2025: Evidence from the Survey of Consumer Finances · Federal Reserve Board
- Survey of Consumer Finances · Federal Reserve Board
- Publication 590-B: Distributions from Individual Retirement Arrangements · Internal Revenue Service