What Is Net Worth and How to Calculate It

This net worth calculator gives you a real-time snapshot of your financial position. Net Worth = Total Assets − Total Liabilities. It's the most comprehensive financial metric available — a high income with high debt produces low net worth, while a modest income with consistent saving builds strong net worth over time. Track it quarterly to see your true financial trajectory.

US Net Worth Benchmarks by Age

Median net worth by age group (Federal Reserve 2022): Under 35: $39,000. Ages 35–44: $135,600. Ages 45–54: $247,200. Ages 55–64: $364,500. Ages 65–74: $409,900. These are medians — half of households have more, half have less. The primary drivers of net worth growth: consistent retirement contributions (tax-advantaged compounding), home equity accumulation (mortgage paydown + appreciation), and avoiding lifestyle inflation as income rises.

Strategies to Grow Net Worth

Two levers: increase assets, decrease liabilities. Most impactful asset growth strategies: maximize tax-advantaged retirement accounts (401k, Roth IRA, HSA); invest consistently in low-cost index funds; build home equity through extra mortgage payments. Liability reduction: pay off high-interest debt first (Avalanche method); avoid new auto loans for depreciating assets; refinance to lower interest rates when rates fall. The formula for wealth: Income − Expenses = Savings → Investments → Net Worth Growth. Related tools: Budget Calculator, FIRE Calculator.