How to Calculate Your Net Worth (and What It Should Be by Age)
Your net worth is the single best snapshot of your overall financial health. It is more meaningful than your income, your credit score, or the balance in any single account. Calculating it takes about 10 minutes and can fundamentally change how you think about money.
Calculate Your Net Worth Now
Add up your assets and liabilities in one place.
Use the Net Worth CalculatorThe Formula
Net worth is the simplest equation in personal finance:
Assets are everything you own that has value. Liabilities are everything you owe. The difference is your net worth. It can be positive (you own more than you owe) or negative (you owe more than you own), and both situations are completely normal at different life stages.
What Counts as an Asset
Cash and savings: checking accounts, savings accounts, money market accounts, CDs, emergency fund. Investments: 401(k), IRA, Roth IRA, brokerage accounts, HSA, index funds, individual stocks, bonds, crypto holdings. Property: home equity (current market value minus mortgage balance), rental properties, land. Vehicles: current resale value of cars, trucks, boats (use Kelley Blue Book or similar for an estimate). Other: business ownership equity, cash value of life insurance, valuable collections, money owed to you.
A common mistake is including personal property like furniture, clothing, or electronics. While these technically have value, they depreciate quickly and are difficult to liquidate. Most financial planners exclude them.
What Counts as a Liability
Mortgage: remaining balance on your home loan. Student loans: federal and private. Auto loans: remaining balance. Credit card debt: total balances across all cards. Personal loans: any other money you owe. Medical debt. Other: home equity lines of credit (HELOC), business loans, money borrowed from family.
Average Net Worth by Age
The Federal Reserve's Survey of Consumer Finances provides the most authoritative data on American household net worth. The median (middle value) is more useful than the average because a few ultra-wealthy households skew the average dramatically upward.
| Age of Head of Household | Median Net Worth | Average Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $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 |
Source: Federal Reserve Survey of Consumer Finances, 2022 (most recent available). These numbers include home equity, which is the largest asset for most American households.
A Negative Net Worth Is Not a Failure
If you are in your 20s or early 30s with student loan debt and you just bought a car, your net worth is probably negative. That is completely normal. A 28-year-old with $80,000 in student loans and $15,000 in savings has a net worth of negative $65,000. As they pay down debt and build savings, that number will steadily climb. The important thing is the trajectory, not the current number.
How to Grow Your Net Worth
There are only three ways to increase net worth: increase assets (save more, invest, grow the value of what you own), decrease liabilities (pay off debt), or both simultaneously. The fastest progress usually comes from attacking high-interest debt aggressively while maintaining consistent investment contributions. Even small amounts invested regularly can grow substantially over time thanks to compound interest.
Check how your savings will grow with the Compound Interest Calculator, or measure your debt burden with the Debt-to-Income Ratio Calculator.
How Often to Calculate Net Worth
Most financial advisors recommend updating your net worth calculation every quarter (every 3 months) or at minimum twice a year. Tracking it regularly lets you see trends, catch problems early, and stay motivated. Some people track it monthly in a simple spreadsheet. The important thing is consistency so you can compare apples to apples over time.
The Wealth-Building Formula
Thomas Stanley, author of "The Millionaire Next Door," developed a simple benchmark formula. Multiply your age by your pre-tax annual income, then divide by 10. The result is what your net worth "should" be. By this formula, a 40-year-old earning $80,000 should have a net worth of at least $320,000 (40 x $80,000 / 10). It is a rough guideline, not a rule, but it gives you a target to aim for.
Set a Savings Target
Figure out how much to save each month to hit your net worth goal.
Use the Savings Goal CalculatorNet Worth FAQ
Related Tools
Calculate your net worth with the Net Worth Calculator. Check your debt burden with the Debt-to-Income Calculator. See how investments grow with the Investment Return Calculator and Compound Interest Calculator. Set a savings target with the Savings Goal Calculator.