What Is Net Worth and How to Calculate Yours Today

Your net worth is the most honest snapshot of your financial position. Unlike income (which shows what comes in) or credit score (which shows how you manage debt), net worth shows what you've actually accumulated. Tracking it regularly is one of the most motivating things you can do for your finances.

How to Calculate Net Worth

Net Worth = Total Assets − Total Liabilities. Assets include everything you own that has monetary value. Liabilities are everything you owe. The result can be positive (you own more than you owe) or negative (common in your 20s — completely normal).

What to Include in Assets

• Cash and checking/savings account balances
• Investment accounts (brokerage, 401k, IRA, Roth IRA)
• Home equity (current market value minus mortgage balance)
• Vehicle value (market value, not what you paid)
• Other valuable property (jewelry, art, business equity)

What to Include in Liabilities

• Mortgage balance
• Car loans
• Student loans
• Credit card balances
• Personal loans, medical debt, HELOC

Average Net Worth by Age (2024)

• Under 35: Average $183,000 / Median $39,000
• 35–44: Average $549,000 / Median $135,000
• 45–54: Average $975,000 / Median $247,000
• 55–64: Average $1,566,000 / Median $364,000
• 65–74: Average $1,794,000 / Median $409,000

Note: Averages are skewed by the ultra-wealthy. The median is a more realistic comparison for most people.