Net Worth Calculator Formula
Understand the math behind the net worth calculator. Each variable explained with a worked example.
Formulas Used
Net Worth
net_worth = total_assets - total_liabilitiesTotal Assets
total_assets_out = total_assetsTotal Liabilities
total_liabilities_out = total_liabilitiesVariables
| Variable | Description | Default |
|---|---|---|
cash | Cash & Savings(USD) | 15000 |
investments | Investments (401k, stocks, etc.)(USD) | 50000 |
property | Real Estate Value(USD) | 250000 |
other_assets | Other Assets (vehicles, etc.)(USD) | 20000 |
mortgage_debt | Mortgage Balance(USD) | 180000 |
other_debt | Other Debts (loans, credit cards)(USD) | 15000 |
total_assets | Derived value= cash + investments + property + other_assets | calculated |
total_liabilities | Derived value= mortgage_debt + other_debt | calculated |
How It Works
Net Worth Formula
Net Worth = Total Assets - Total Liabilities
Assets include everything you own (cash, investments, property). Liabilities include everything you owe (mortgage, loans, credit cards).
Worked Example
Calculating net worth with typical middle-class finances.
cash = 15000investments = 50000property = 250000other_assets = 20000mortgage_debt = 180000other_debt = 15000
- 01Total assets = $15,000 + $50,000 + $250,000 + $20,000 = $335,000
- 02Total liabilities = $180,000 + $15,000 = $195,000
- 03Net worth = $335,000 - $195,000 = $140,000
Ready to run the numbers?
Open Net Worth Calculator