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Net worth is the total value of every asset that an individual owns subtracted by all their liabilities. Net worth can also be calculated for businesses, governments, or countries. 

To calculate your personal net worth first add up all your personal assets. 

  1. Value of your personal residence.
  2. Value of any rental homes you own.  
  3. The value of any land or property you own. 
  4. The value of your car.
  5. Any brokerage account. 
  6. Your retirement account.
  7. Stocks.
  8. Bonds.
  9. Precious metals.
  10. Value of a business you own.
  11. Value of a website you own.  
  12. Intellectual property, books, software, copyrights, trademarks, licenses, patents. etc, 

Adding all these things together give you the value of your assets. 

You will also need to add up all your personal debts and liabilities. 

  1. Your remaining personal mortgage balance. 
  2. Second mortgage. 
  3. Outstanding home equity line of credit. 
  4. Money you owe on a rental home. 
  5. Any debt on properties. 
  6. The remaining balance on a car loan.
  7. Margin debt. 
  8. Credit card debt. 
  9. Student loan debt. 
  10. Business debt. 
  11. Any personal loan debt. 

A person’s financial assets minus all outstanding liabilities is what equals their net financial assets or net worth.

Assets – Liabilities = Net Worth

how to calculate net worth