Estimated net worth and supporting figures
All asset categories are added once and all outstanding liabilities are deducted once. Property is entered at an estimated present value, while debts use outstanding balances rather than original loan amounts.
To compare monthly debt payments with income rather than asset balances, use the Debt-to-Income Calculator as a separate affordability measure.
The formula
All asset categories are added once and all outstanding liabilities are deducted once. Property is entered at an estimated present value, while debts use outstanding balances rather than original loan amounts.
Worked net worth example
Cash of 15,000, investments of 50,000, property of 250,000, and other assets of 10,000 total 325,000. Deducting 180,000 in mortgage balances and 12,000 in other debts gives 133,000 net worth.
How to use this calculator
- Enter cash and savings, investment assets, property market value, other assets, mortgage balances.
- Set other debts using the stated units or choices.
- Calculate and compare estimated net worth, total assets, total liabilities, cash and investment assets.
Choosing inputs for net worth
A net-worth statement is a snapshot at one date. Use balances and valuations from the same date wherever possible so that a market movement or a newly paid debt does not distort the comparison. For jointly owned assets, decide whether the statement describes the household or only your ownership share.
List the full property value under assets and its mortgage under liabilities. Entering home equity as the property value and then also deducting the mortgage would count the debt twice. Other assets may include vehicles or business interests, but use defensible current values rather than replacement prices.
Interpreting estimated net worth
The cash and investment subtotal separates those categories from property and other assets. It is not a guarantee that every investment can be sold immediately, without a price change, tax, or withdrawal restriction. A positive net worth can coexist with limited cash for bills; a negative figure indicates that entered liabilities exceed entered assets.
Assumptions & limitations
What this calculation assumes
- Values use one currency and one valuation date.
- Asset categories do not overlap and all outstanding debts are included.
What to keep in mind
- Selling costs, deferred taxes, pensions, future income, and asset liquidity are not valued.
Common questions
Do I enter the original mortgage amount?
Enter the outstanding principal balance at the date of your statement.
Can net worth be negative?
Yes. The result is negative when your listed debts exceed your listed assets; the calculator does not clamp that result to zero.
Should property be entered as equity or full value?
Use its full current value and enter the outstanding mortgage separately. Entering equity and also subtracting the mortgage would count the debt twice.
Sources & further reading
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