What Is Net Worth?
Net worth is the single most useful snapshot of your financial health:
Net Worth = Total Assets − Total Liabilities
Positive net worth means you own more than you owe. Negative net worth means your debts exceed your assets. Tracking net worth over time is the best way to measure your financial progress.
What Counts as an Asset?
- Liquid assets: Cash, checking/savings accounts, money market funds — quickly accessible
- Investments: Stocks, ETFs, bonds, cryptocurrency — values fluctuate with market
- Real estate: Current market value of your home and investment properties (not purchase price)
- Retirement accounts: 401(k), IRA, pension account balances
- Other assets: Vehicles (current value), valuables, business equity
What Counts as a Liability?
- Mortgage: Remaining principal balance (not the original loan amount)
- Auto loans: Current outstanding balance
- Credit card debt: Total unpaid balances across all cards
- Student loans: Remaining loan balance
- Personal loans: Any other outstanding borrowing
Calculate Your Net Worth Now
Use tool.tl's net worth calculator:
- Go to tool.tl/net-worth-calculator
- Enter each of your assets and their current values
- Enter each liability and current balance
- See your net worth instantly, with an asset/liability breakdown
Net Worth Benchmarks by Age (US, 2022)
Federal Reserve Survey of Consumer Finances median net worth:
| Age Group | Median Net Worth | Mean Net Worth |
|---|
| Under 35 | $39,000 | $183,000 |
| 35–44 | $135,000 | $549,000 |
| 45–54 | $247,000 | $975,000 |
| 55–64 | $365,000 | $1,566,000 |
| 65–74 | $410,000 | $1,794,000 |
The median is more meaningful than the mean — a small number of ultra-high-net-worth individuals skew the average significantly upward.
How to Grow Your Net Worth
- Increase income: Side income, skill development, career advancement — more income means more to invest
- Eliminate high-interest debt: Paying off credit card debt (20%+ APR) is an instant guaranteed return. Every dollar repaid increases net worth immediately
- Invest the difference: Put money in assets that grow (index funds, real estate) rather than sitting in low-yield savings
- Track quarterly: Update your net worth every 3 months. Seeing progress — even small amounts — builds financial momentum
Frequently Asked Questions
Should I include my home in net worth?
Yes — use current market value minus remaining mortgage balance (your home equity). But remember: your home is illiquid. Over-relying on home equity in financial planning creates liquidity risk.
Is negative net worth normal?
For young adults — especially those with student loans — negative net worth is very common. What matters is the trend: if your net worth is growing each quarter, you're moving in the right direction.
Is the calculator free?
Yes — tool.tl's net worth calculator is completely free and runs locally in your browser. Your financial data never leaves your device.