How To Calculate Your Net Worth Step by Step
Most people have a rough sense of what's in their bank account. Far fewer know their actual net worth. The difference matters — because your bank balance tells you what you have right now, while your net worth tells you where you actually stand financially. Here's exactly how to calculate it.
Step 1: List Every Asset You Own
An asset is anything you own that has monetary value. Start by listing everything — don't filter or judge, just list. Common assets include:
- Current account and savings account balances
- Investment accounts (stocks, index funds, ETFs)
- Pension or retirement fund value
- Property (current market value, not purchase price)
- Vehicles (current resale value)
- Any other valuables with significant resale value
Add up the total. This is your total assets.
Step 2: List Every Liability You Owe
A liability is anything you owe to someone else. Be thorough and honest — this is where most people undercount. Common liabilities include:
- Mortgage outstanding balance
- Car loan outstanding balance
- Student loan outstanding balance
- Credit card balances
- Personal loans
- Any money owed to family or friends
- Tax owed (especially relevant for freelancers)
Add up the total. This is your total liabilities.
Step 3: Subtract Liabilities From Assets
Net worth = Total assets − Total liabilities.
That's it. The resulting number — positive or negative — is your net worth. Write it down with today's date. That's your starting point.
| Example | Amount |
|---|---|
| Savings account | €4,200 |
| Investment account | €8,500 |
| Pension value | €12,000 |
| Total assets | €24,700 |
| Student loan | −18,000 |
| Credit card | −1,200 |
| Total liabilities | −19,200 |
| Net worth | €5,500 |
Step 4: Track It Monthly
A single calculation is useful. Monthly tracking is transformative. Update your numbers once a month — on payday, on the first of the month, or any fixed date that works for you. Over time, the trend tells you whether your financial decisions are working.
KNOW YOUR NUMBER. OWN YOUR FUTURE.
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Read more: What Is Net Worth and Why Should You Track It
Read more: The Biggest Mistakes People Make When Tracking Net Worth
Read more: Net Worth Tracker for Excel — See Your Complete Financial Picture