How to calculate your net worth

Net worth is everything you own minus everything you owe. It is the single clearest measure of financial progress because it captures saving, investing and debt repayment in one number.

The rule

Net worth = total assets − total liabilities

Do it automatically — Net worth tracker

Step by step

  1. 1List assets: cash, savings, investments, pensions, property and vehicles at realistic values.
  2. 2List liabilities: mortgage, loans, credit cards, overdrafts, tax owed.
  3. 3Subtract liabilities from assets.
  4. 4Repeat quarterly — the trend matters more than the absolute figure.

What trips people up

  • Value property conservatively and exclude selling costs from the upside.
  • Include pensions; leaving them out badly understates long-term progress.

Common questions

Should I include my car?

Yes, at trade-in value — but expect it to fall every year.

What is a good net worth?

A common benchmark is annual salary × age ÷ 10, but circumstances vary hugely.

Skip the maths

Snapshot your net worth from savings, investments, property and debts.

Open the assets − liabilities tool

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