Net Worth Calculator
Calculate your net worth by adding up all your assets and subtracting your liabilities. Compare your results to the average net worth by age based on Federal Reserve data. Track your financial progress over time.
How to Calculate Your Net Worth
Your net worth is everything you own minus everything you owe. It's the single best measure of your overall financial health.
- Formula: Net Worth = Total Assets − Total Liabilities
- Assets: Cash, savings, investments, retirement accounts, real estate, vehicles
- Liabilities: Mortgage, car loans, student loans, credit card debt, personal loans
📋 Net Worth by Age (Federal Reserve 2022)
| Age | Median | Average |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35-44 | $135,300 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
📚 What Is Net Worth?
Net worth is a financial snapshot that shows your overall wealth at a specific point in time. It's calculated by subtracting all your liabilities (what you owe) from your total assets (what you own).
📐 Net Worth Formula
Example: $500,000 in assets minus $200,000 in debts = $300,000 net worth
Why Net Worth Matters
Unlike income, which only shows money flowing in, net worth reveals your complete financial picture. Someone earning $200,000/year with $500,000 in debt has a different financial position than someone earning $75,000 with $300,000 saved.
📊 US Net Worth Statistics (Federal Reserve 2022)
- Average household net worth: $1,063,700
- Median household net worth: $192,900
- Millionaire households: ~18% of US households
- Top 1% threshold: ~$13,000,000
📈 Net Worth by Age: What Should Yours Be?
Net worth typically grows with age as you save more, invest longer, and pay down debt. Here's how Americans stack up by age group according to Federal Reserve data.
| Age Group | Median | Average | Suggested Target |
|---|---|---|---|
| Under 35 | $39,000 | $183,500 | 0.5-1x salary |
| 35-44 | $135,300 | $549,600 | 1-3x salary |
| 45-54 | $247,200 | $975,800 | 3-5x salary |
| 55-64 | $364,500 | $1,566,900 | 5-7x salary |
| 65-74 | $409,900 | $1,794,600 | 7-10x salary |
| 75+ | $335,600 | $1,624,100 | Varies |
Source: Federal Reserve Survey of Consumer Finances (2022)
🎯 Rule of Thumb by Age
Age 30: 0.5-1x salary | Age 40: 2-3x salary | Age 50: 4-5x salary | Age 60: 6-8x salary | Retirement: 10-12x salary
💵 Understanding Your Assets
Assets are everything you own that has monetary value. They fall into several categories:
Liquid Assets (Easy to Access)
- Cash & checking accounts - Money available immediately
- Savings accounts - Including high-yield savings
- Money market accounts - Higher interest, limited transactions
- Certificates of Deposit (CDs) - Time-locked savings
Investment Assets
- Brokerage accounts - Stocks, bonds, mutual funds, ETFs
- Retirement accounts - 401(k), IRA, Roth IRA, 403(b)
- Cryptocurrency - Bitcoin, Ethereum, etc.
- Other investments - REITs, commodities, etc.
Fixed Assets
- Primary residence - Current market value
- Investment properties - Rental properties, land
- Vehicles - Cars, boats, RVs (current resale value)
- Valuable items - Jewelry, art, collectibles
⚠️ Valuation Tips
Use realistic market values, not purchase prices. For homes, check Zillow or recent comparable sales. For vehicles, use Kelley Blue Book. Don't include sentimental items unless they have verified resale value.
💳 Understanding Your Liabilities
Liabilities are debts you owe. Understanding your debt types helps prioritize payoff strategies:
| Debt Type | Typical APR | Priority |
|---|---|---|
| Credit Cards | 15-30% | High (pay first) |
| Personal Loans | 6-36% | Medium-High |
| Student Loans | 3-8% | Medium |
| Auto Loans | 4-10% | Medium |
| Mortgage | 3-8% | Lower (often "good" debt) |
| HELOC | 5-10% | Medium |
💡 Good Debt vs. Bad Debt
Good debt (mortgages, student loans) can increase your net worth over time through asset appreciation or increased earning potential. Bad debt (credit cards, high-interest personal loans) typically funds consumption and decreases net worth.
💪 How to Increase Your Net Worth
Building net worth comes down to two strategies: increasing assets and decreasing liabilities. Here are proven approaches:
Pay Off High-Interest Debt
Credit card debt at 20%+ APR is a guaranteed negative return. Eliminate it first using the avalanche or snowball method.
Max Retirement Contributions
Always get your employer's 401(k) match - it's free money! The 2024 contribution limit is $23,000 ($30,500 if 50+).
Invest Consistently
Dollar-cost averaging into low-cost index funds builds wealth over time. The S&P 500 has averaged ~10% annual returns historically.
Increase Your Income
Negotiate raises, switch jobs strategically, develop high-value skills, or start side hustles. More income = more savings potential.
Build Home Equity
If you own a home, paying down your mortgage builds equity. Consider extra principal payments when possible.
Live Below Your Means
The gap between income and spending is what builds wealth. Aim to save at least 20% of your income.
⚠️ Common Net Worth Calculation Mistakes
Overvaluing Personal Property
Your furniture, electronics, and clothes are worth far less than you paid. Use realistic resale values.
Forgetting Hidden Liabilities
Include medical bills, taxes owed, money borrowed from family, and any outstanding debts.
Checking Too Frequently
Daily market fluctuations can cause unnecessary stress. Quarterly or annual check-ins are sufficient.
Only Comparing to Averages
Averages are skewed by ultra-wealthy households. Median is a better benchmark for typical households.
❓ Frequently Asked Questions
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It represents your overall financial position at a specific point in time.
According to the Federal Reserve's 2022 Survey of Consumer Finances, the average American household net worth is $1,063,700. The median (more representative of typical households) is $192,900.
The median net worth for Americans under 35 is about $39,000. A common guideline suggests having a net worth equal to half your annual salary by age 30.
Yes, your home's current market value should be included as an asset. Subtract your mortgage balance to get your home equity, which contributes to your net worth.
Yes, if your total liabilities exceed your total assets, you have negative net worth. This is common for young adults with student loans. About 10% of American households have negative net worth.
High net worth individuals (HNWI) typically have $1 million+ in liquid assets. The top 10% of Americans have a net worth of about $1.9 million or more, while the top 1% starts at approximately $13 million.
Most financial experts recommend calculating your net worth quarterly or at least annually. This helps track progress toward financial goals without causing stress from daily market fluctuations.
Financial data verified using Federal Reserve Survey of Consumer Finances (2022)
This calculator uses official data from the Federal Reserve's triennial Survey of Consumer Finances, the most comprehensive survey of household wealth in the United States.
Last updated: February 15, 2026
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