How the Net Worth Calculator Works
Net worth is the single best one-number summary of your financial position. The formula is straightforward: total assets minus total liabilities. The hard part is being honest about both sides.
Honest asset values
For market-priced assets like brokerage accounts and retirement accounts, use today's balance. For your home, use a conservative recent estimate from Zillow or Redfin, not the peak price you remember. For vehicles, use Kelley Blue Book trade-in value, not private-party. Conservative numbers prevent the wishful-thinking version of net worth.
Honest liability values
Use the actual current payoff balance on each debt. Credit card balances should be the full statement balance, not the minimum due. Mortgages should be the principal balance from your most recent statement.
Tracking over time matters more than the number itself
Net worth at a single moment is interesting; net worth over years is the actual story. Save a quarterly snapshot in a spreadsheet or notes app. After two or three years you will have a clear picture of which months and habits move the needle and which don't.
How to compare to peers
The Federal Reserve's Survey of Consumer Finances publishes median net worth by age group. The 2022 data: $39,000 under age 35, $135,600 ages 35-44, $247,200 ages 45-54, $364,500 ages 55-64. Always use the median, not the mean - the mean is distorted by a small number of extremely wealthy households.