Frequently Asked Questions
How do I calculate net worth?
Net worth = total assets − total liabilities. Assets include cash, investments, retirement accounts, real estate (at market value), vehicles, and valuables. Liabilities include mortgages, student loans, auto loans, credit card balances, and any other debts. Track it quarterly or annually; trend matters more than the absolute number.
What is a good net worth for my age?
A common heuristic from The Millionaire Next Door: expected net worth = age × pre-tax income ÷ 10. So a 40-year-old earning $80,000 would target $320,000. Federal Reserve data shows median net worth of about $39,000 for under-35, $135,000 for 35–44, $247,000 for 45–54, and $364,000 for 55–64.
Should I include my house in net worth?
Yes - at conservative market value (recent comparable sales) minus the mortgage balance. Some people track "investable net worth" separately, excluding home equity and personal-use assets, because those don't generate income or fund retirement directly. Both views are useful for different decisions.
Why is net worth a better metric than income?
Income measures cash flow; net worth measures wealth accumulation. Two people earning $100,000 can have wildly different net worths depending on saving rate, debt, and investment behavior. Net worth captures whether you're actually building financial security - high earners with high lifestyle inflation often have surprisingly low net worth.
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Estimates only. Not financial advice.
Financial Disclaimer: Estimates only. Not financial advice.
This calculator provides estimates for informational purposes only. Actual financial outcomes depend on market conditions, personal circumstances, and decisions. Not financial advice. Consult a certified financial planner before making financial decisions affecting your future.