Utilix knowledge base
How to Calculate Your Net Worth
Published May 31, 2026
Net worth is the single number that summarises your financial position. It is the difference between everything you own and everything you owe:
Net worth = Total assets − Total liabilities
A positive net worth means your assets exceed your debts. A negative net worth means your debts exceed your assets — common early in life with student loans, and not a crisis as long as it's trending in the right direction.
What Counts as an Asset
Assets are things you own that have monetary value:
| Asset type | Examples |
|---|---|
| Cash & equivalents | Checking, savings, money market accounts, cash |
| Investments | Brokerage accounts, stocks, bonds, ETFs, mutual funds |
| Retirement accounts | 401(k), IRA, Roth IRA, pension present value |
| Real estate | Current market value of property you own |
| Business interests | Ownership stake or equity in a business |
| Crypto & digital assets | Current market value of holdings |
| Vehicles | Current resale value (not purchase price) |
| Other valuables | Art, collectibles, jewellery (at liquid resale value) |
Use current market value, not what you paid. A car you bought for $35,000 that's now worth $22,000 enters as $22,000.
What Counts as a Liability
Liabilities are debts and obligations you owe:
| Liability type | Examples |
|---|---|
| Mortgage | Outstanding principal balance |
| Auto loans | Remaining loan balance |
| Student loans | Federal and private loan balances |
| Credit card debt | Current balances (not credit limit) |
| Personal loans | Any outstanding balances |
| Medical debt | Bills in collections or payment plans |
| Business debt | If personally guaranteed |
Do not include future obligations (rent, utilities, insurance premiums) — only actual debts you currently owe.
Worked Example
| Assets | Value |
|---|---|
| Checking + savings | $8,500 |
| Brokerage account | $24,000 |
| 401(k) | $42,000 |
| Home (market value) | $310,000 |
| Car (resale value) | $18,000 |
| Total assets | $402,500 |
| Liabilities | Balance |
|---|---|
| Mortgage remaining | $268,000 |
| Auto loan | $9,200 |
| Student loan | $14,800 |
| Credit card | $2,100 |
| Total liabilities | $294,100 |
Net worth = $402,500 − $294,100 = $108,400
Use the Net Worth Calculator to enter your own figures and get a categorised breakdown.
Net Worth Benchmarks by Age
These are median figures (US, Federal Reserve Survey of Consumer Finances 2022) — not targets, just reference points:
| Age group | Median net worth |
|---|---|
| Under 35 | $39,000 |
| 35–44 | $135,000 |
| 45–54 | $247,000 |
| 55–64 | $364,000 |
| 65–74 | $410,000 |
Median is more useful than mean here because a small number of very wealthy households pull the mean up dramatically. Half of households in each group are above the median, half below.
What Net Worth Doesn't Capture
Net worth is a snapshot, not a complete financial health score:
- Cash flow — you can have high net worth but be cash-flow negative (illiquid assets, high fixed costs).
- Income stability — a tenured professor and a gig worker with identical net worth have very different risk profiles.
- Home equity liquidity — home equity is real, but it isn't available without selling or borrowing against the property.
- Debt type — a $200,000 mortgage on a $400,000 home and a $200,000 credit card balance are both liabilities, but they signal very different financial health.
How Often to Calculate It
Monthly is too frequent and noisy for most people (markets move). Quarterly or annually is enough to see meaningful trends. What matters most is the direction of change — are total assets growing faster than total liabilities?
Pair your net worth snapshot with your FIRE number (how much you need to retire) to see how far you are from financial independence. The FIRE Number Calculator estimates the portfolio target; the Retirement Calculator models the path to get there.