Net worth formula
Use current market values for assets (what your home or car would sell for today, your account balances) and current payoff amounts for debts.
Median net worth by age
Source: Federal Reserve Survey of Consumer Finances, 2022 (the most recent survey). Averages are much higher because a few very wealthy households pull them up, so the median is the better benchmark.
How to grow your net worth
- Pay down high-interest debt — every dollar repaid raises net worth by a dollar.
- Invest consistently in retirement accounts, especially with an employer match.
- Spend less than you earn and automate the difference into savings.
- Remember that cars lose value; homes and investments usually gain it over long periods.
Track it once or twice a year — the trend matters more than any single number.
Related Balance Sheet & Wealth Tracking Tools
Your personal net worth is the ultimate scorecard of your overall financial health. Structure monthly cash-flow allocations with our Budget Calculator, track diversified capital growth via the Investment Calculator, accelerate liability reduction with the Debt Payoff Calculator, and target your golden years nest egg using our Retirement Calculator.
Frequently asked questions
Is a negative net worth bad?
It's common early in adulthood, especially with student loans. What matters is that it's moving up. Focus on paying down debt and building savings.
Should I include my home?
Yes — include the home's market value as an asset and the mortgage as a liability. Some people also track net worth excluding the home to see their liquid wealth.
Should I include retirement accounts?
Yes. Remember that traditional 401(k) and IRA balances will be taxed when withdrawn, so their after-tax value is somewhat lower.