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How to Calculate Net Worth

Net worth -- or assets minus liabilities -- is a quick indicator of the financial health of a company or an individual person. Find out what you're really worth.


  • Step 1: Subtract the total liabilities from your total assets to find your total net worth. What you include or leave out from the calculation is up to you, but be consistent when tracking your personal worth over time.
  • Step 2: Determine net worth for a business or corporation, also known as shareholders' equity, by subtracting liabilities on the balance sheet from assets. The numbers give a good representation of either a company's or an individual's financial standing.
  • FACT: According to the 2009 World Wealth Report, the world's population of high net worth individuals was down 14.9 percent from 2007, while their wealth had dropped 19.5 percent.
  • Step 3: Calculate your total liabilities. Add up the money you owe, including home, car, student, and home equity loans; debts such as credit card balances; and alimony or child support payments.
  • TIP: Lean toward under-estimating instead of over-estimating the value of fixed assets that are not appraised consistently or are not easily sold upon demand.
  • Step 4: Add your total investment assets. Include the cash value of stocks, bonds, CDs, mutual funds, and retirement accounts, including IRAs, Roth IRAs, and 401Ks.
  • Step 5: Include the total value of your fixed assets. These include real estate, vehicles, jewelry, antiques, art, antiques, and collectibles, at current market value.
  • Step 6: Total up all your liquid assets. Include your cash, checking and savings accounts, money market accounts, and life insurance plans that have a cash value.

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