How to Calculate Net Worth
Calculate your total net worth by subtracting all liabilities from your assets.
The Formula
totalAssets - totalLiabilitiesThe net worth formula uses the mathematical relationship: totalAssets - totalLiabilities. Each variable in the formula represents a measurable quantity that affects the final result.
Step-by-Step Method
- 1Identify all input values needed for the net worth calculation.
- 2Substitute your known values into the formula: totalAssets - totalLiabilities.
- 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
- 4Check that your result has the correct units and is within a reasonable range.
- 5Verify using the interactive Net Worth Calculator to confirm your answer.
Related Topics
net worthpersonal financeassetswealth
Use the Interactive Calculator
Skip the manual math — get instant results with our free Net Worth calculator.
