How to Calculate Net Worth: The One Number That Tells You How Rich You Are
There's one number that actually tells you whether you're getting richer or poorer. It's not your salary. It's not your bank balance. It's your net worth.
And almost nobody under 30 tracks it.
What net worth is
Net worth = Assets − Liabilities. Add up everything you own. Subtract everything you owe. That's the number.
It can be negative. A new grad with $35,000 in student loans, $1,500 in checking, and a car worth $8,000 has a net worth of roughly negative $25,500. That's not shameful — that's the starting line.
What counts as an asset vs a liability
Assets (what you own)
- Cash in checking and savings
- Investment accounts (brokerage, Roth IRA, 401(k))
- Real estate, at current market value
- Vehicles, at current market value
- Crypto holdings
Liabilities (what you owe)
- Credit card balances
- Student loans
- Auto loans
- Mortgage balance
- Personal loans
Average net worth by age in the U.S.
- Under 35: median ~$39,000.
- 35–44: median ~$135,000.
- 45–54: median ~$247,000.
- 55–64: median ~$364,000.
- 65+: median ~$410,000.
Means are much higher than medians because a small number of very wealthy people drag the average up. Medians are the more honest benchmark for what "normal" looks like.
Why income ≠ wealth
A doctor making $300,000 a year with $250,000 in student loans, $40,000 in credit card debt, and a leased Tesla can easily have a net worth of zero. A teacher making $55,000 who's been investing consistently since 22 can be a millionaire at 50.
The score isn't how much you earn. It's how much you keep and what it grows into.
How to calculate your net worth: a simple spreadsheet
- Open a new spreadsheet. Label rows: Checking, Savings, Brokerage, Roth IRA, 401(k), other assets.
- Below those: Credit cards, Student loans, Auto loan, other debts.
- Add columns for each month.
- Fill in once a month, on the same day. Total assets minus total liabilities at the bottom.
That's it. Ten minutes per month. You'll see the line go up and to the right, and that single visual is worth more than 20 budgeting apps.
Why monthly tracking matters
Behavioral psychology is clear: people who measure progress are dramatically more likely to make progress. The simple act of updating the number forces awareness, and awareness forces small good decisions.
Key Takeaway
Your net worth is the score. Your income is just the pace of play. Track it monthly and the line almost always goes up.
Learn this hands-on
Findexhq turns ideas like this into 5-minute daily lessons with quizzes and a portfolio simulator. See how the learning system works, or check Findexhq pricing — the free plan covers the basics.
Findexhq Editorial Team
A team of personal-finance writers and former fintech operators on a mission to make money make sense — for everyone.