What is Net Worth?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It's the most comprehensive measure of your financial health and wealth accumulation. Unlike salary which shows your earning capacity, net worth shows your actual wealth - what you'd have left if you sold everything and paid off all debts today.
Net Worth Formula
Net Worth = Total Assets - Total Liabilities
Debt-to-Asset Ratio = (Total Liabilities / Total Assets) × 100
Why Track Net Worth?
Essential for measuring financial progress, retirement readiness, wealth building, and making informed money decisions. Your net worth should grow consistently year over year.
How to Increase Net Worth
Increase income, reduce expenses, invest wisely, pay off high-interest debt, appreciate assets (property, stocks), and avoid lifestyle inflation. Focus on growing assets faster than liabilities.
Sources & methodology
Formulas on this page are shown in full above and verified against official sources.
Results are estimates for education and planning — not financial, tax or investment advice. Verify important decisions with a qualified professional.