Net Worth Calculator

An asset is something of value that you own or that can be converted to cash. A liability is a financial obligation or debt that you owe to others.

A negative net worth occurs when your total liabilities exceed your total assets. This is common for young professionals or students who have taken on large education or home loans but have not yet accumulated savings.

A ratio under 30% to 40% is generally considered healthy. A ratio above 50% means more than half of your assets are financed by debt, which increases your financial risk.

Yes. Your home is an asset and should be listed at its current market value. However, the outstanding home loan amount must also be listed under liabilities (mortgage) to get an accurate net worth.

Yes, but you should list them at their current resale value, not their original purchase price. Vehicles depreciate rapidly, so update their values periodically.

Calculating it once a quarter or twice a year is sufficient. More frequent updates are unnecessary since asset values and loan balances do not change dramatically month-to-month.

No. Net worth measures accumulated wealth, not income. Your salary is an income flow that helps you build assets or pay down debt, which in turn increases net worth over time.

Yes. True financial freedom is reached when your investment assets generate enough passive income to cover your living expenses, which is directly reflected in a growing net worth.

If you have investments in stocks or mutual funds, your net worth will fluctuate along with market cycles. It is important to focus on the long-term trend rather than daily fluctuations.

Net worth is the total value of everything you own (assets) minus everything you owe (liabilities).