This article will show you how to calculate your personal net worth. Simply, it is the value of all the assets you own minus all the liabilities or debt that you have.

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Things You Will Need

The value of any assets you have
The value of any debts you have

Step 1

The first step is to figure out how much all of your personal assets are worth. Add together ALL the value of your different assets. These can include: cash on hand,savings accounts, checking accounts, mutual funds, brokerage accounts, 401(k)'s and retirement accounts, and hard assets such as a home, cars, boats, antiques, art, or jewelry. Using Excel or a calculator will make this incredibly easy.

There will be some variability in this part of the process, because some things are not so easily estimable. The price of a home, for instance, changes year-to-year, and is not truly valued unless an appraiser gives their opinion (or it is sold). Other items might not be worth what you paid for them, so the general rule is to be conservative when valuing them.

Step 2

Second, you want to add together the value of all outstanding debts you owe. For most people, the biggest will be a mortgage on their primary home. This will also include any credit card debt, bank loans, student loans, and personal loans. In creating a spreadsheet, keep all of these separate. Sum them up to arrive at your total liabilities.

Step 3

Take the difference between your total assets and your total liabilities. This number is your net worth. Obviously, you don't want this to be negative.
Nowadays, there is plenty of great software that will help you calculate your net worth. One such site,, for example, will prominently display your net worth at the top of your home page once you set up all your bank accounts, credit cards, loans, and other assets or liabilities.

From a corporate standpoint, net worth on the balance sheet would be the net assets (assets - liabilities), or what's known as the stockholder's equity.

Tips & Warnings

As was mentioned earlier, the key with any net worth calculation is to be conservative. If you own a home, don't overvalue it. Luckily, with any liquid assets or debts, you can always know the value of them.