Net Worth — Frequently Asked Questions
Straight answers to the questions people ask before they add up their assets and debts.
These answers cover the mechanics of net worth — what to count, what to leave out, and how to read your result against national benchmarks. They are educational, not financial advice; confirm anything important with a qualified professional.
Frequently Asked Questions
How do I calculate my net worth by hand?
Add up everything you own (cash, investments, home equity, cars, other property) and subtract everything you owe (mortgage, loans, credit cards). The remainder is your net worth. This calculator does the subtraction for you.
Should I include my car as an asset?
Yes, at its resale value, not what you paid. Then subtract any auto loan against it. Cars lose value, so use a realistic private-sale estimate, not the sticker price.
Do retirement accounts count toward net worth?
Yes — a 401(k) or IRA is an asset at its current balance. Just remember it’s not liquid: you’d pay penalties and taxes to spend it early, which is why liquid net worth leaves it out.
What is the difference between net worth and liquid net worth?
Net worth counts everything you own minus everything you owe. Liquid net worth counts only what you could turn into cash quickly, excluding your home and retirement accounts.
What is a good net worth for my age?
The SCF 2023 medians run about $18,300 under 35, $90,400 at 35–44, $212,500 at 45–54, and $275,600 at 55–64. Use the median, not the average, as your yardstick.
Why is the average net worth so much higher than the median?
A small number of very wealthy households pull the average up. The median is the middle household and a fairer comparison for most people.
How do I calculate net worth with a mortgage?
Put your home’s market value as an asset and the mortgage balance as a liability. Only the equity — value minus balance — adds to your net worth.
What does a debt-to-asset ratio of 0.5 mean?
Half of what you own is financed by debt. Under 0.4 is healthy; above 0.6 means debts are a large share of your wealth and worth watching.
Can net worth be negative?
Yes, and it’s common for students and young graduates with loans. The goal is for the trend to turn positive as you pay down debt and build assets.
How is my percentile estimated?
We match your age to an SCF bucket and place your net worth on that bucket’s published percentiles by interpolation. It’s an estimate of where you rank, not an exact census figure.
Should my spouse and I calculate jointly?
For household planning, yes — total both partners’ assets and debts. It shows your combined position and shared debt risk more clearly than two separate numbers.
How often should I recalculate?
Once or twice a year is enough. You’re looking for the long-run direction, not month-to-month noise from market swings.
Is my data private on this calculator?
Yes. All math runs in your browser; nothing you type is uploaded or stored. Close the tab and the numbers are gone.
Is this financial advice?
No. It’s an educational tool using standard formulas and public benchmarks. For decisions about your specific situation, talk to a qualified financial or tax professional.