Net Worth Calculator: Calculate Your Own Net Worth
What is "net worth"?
Put very simply, net worth is assets minus liabilities.
More broadly, someone's net worth is calculated by adding up the sum value of their assets (things that have positive worth) and then subtracting the sum value of their liabilities (things that have negative worth). The result of this equation is a person's net worth.
Some assets are owned outright without an associated liability. For example, the cash you keep in your bank account, stocks, retirement savings and real estate that's owned without any debt. All of these assets contribute directly to the positive side of the net worth equation.
Other assets have an associated liability. Also known as a mortgage, loan or debt. For example, most homes are bought with a mortgage. Most cars are purchased with a loan. As you may have guessed, assets that have associated liabilities are typically very expensive purchases that are acquired over time.
Examples of common assets:
- Real estate
- Stock holdings
- Retirement accounts
- Cars
- Art
- Jewelry
- Cash in checking and savings accounts
Examples of common liabilities:
- Mortgages
- Auto loans
- Student loans
- Credit card debt
For example, let's calculate the net worth of a hypothetical a person. Let's call this person Jane Dough.
Jane Dough's assets are:
- $500 thousand house
- $250 thousand worth of stock
- $400 thousand in retirement savings
- $20,000 car
- $5,000 diamond ring
- $25,000 in checking/savings
Assets total = $1,200,000
Jane Dough's liabilities are:
$200,000 mortgage
$10,000 car loan
$50,000 student loan debt
$5,000 credit card debt
Liabilities total = $265,000
Jane Dough's net worth is found by subtracting her $265,000 worth of liabilities from her $1,200,000 assets. In other words:
$1,200,000 – $265,000 = $935,000
Net Worth Calculator
Use our handy net worth calculator below to find your own net worth.
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Average American Net Worth
Every three years, the Federal Reserve conducts a Survey of Consumer Finance to determine a variety of data points about American households. One of the data points the Fed studies is net worth. The survey looks at net worth by age, race, education and location.
According to the Federal Reserve's 2019 Survey of Consumer Finance, the typical (median) American family has a net worth of $121,700.
Therefore, our hypothetical person Jane Dough would be considered extremely high net worth, with a net worth that is nearly 8 times the median.
But! It should be noted, median is NOT average. Median is the middle value in a set of numbers. If you take a straight average, the average American family's net worth is actually $748,800. Why the huge discrepancy? Because the average takes into account the net worths of the richest people in America. There are roughly 700 billionaires in America. Two of those billionaires, Elon Musk and Jeff Bezos, have averaged net worths north of $200 billion for several years now. At various points in recent history, at least 8 American citizens have had net worths north of $100 billion.
How does your net worth compare to the American median of $121,700? How does your net worth compare to the American average of $748,800?