We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Net worth is assets minus liabilities. Or, you can think of net worth as everything you own less all that you owe. Find your net worth by using our net worth calculator.
Calculating your net worth requires you to take an inventory of what you own, as well as your outstanding debt. And when we say own, we include assets that you may still be paying for, such as a car or a house.
For example, if you have a mortgage on a house with a market value of $200,000 and the balance on your loan is $150,000, you can add $50,000 to your net worth.
Basically, the formula is:
ASSETS – LIABILITIES = NET WORTH
And by the way, your income is not included in a net worth calculation. A person can bring home a big paycheck but have a low net worth if they spend most of their money. On the other hand, even people with modest incomes can accumulate significant wealth and a high net worth if they buy appreciating assets and are prudent savers.
All of your retirement accounts are included as assets in your net worth calculation. That includes 401(k)s, IRAs and taxable savings accounts.
If you’re not sure what assets and liabilities are, here are some guidelines:
Assets: Assets include cash — such as in your checking, savings and retirement accounts — and items such as cars, property and investments that you could sell for cash. These are often referred to as liquid assets.
Some fixed assets can count toward your net worth calculation, too, provided you can or would sell them if needed. For example, your home would count toward your net worth if you’re willing to use it for a home equity line of credit or sell it should the need arise.
Liabilities: Any money you owe to another person or entity falls under this category. That includes revolving consumer debts — such as credit card balances — as well as personal, auto, payday and title loan balances. If you’re using your home as an asset, its mortgage counts as a liability as well.
See more financial calculators from NerdWallet and consult our personal finance guide.
The Federal Reserve releases its Survey of Consumer Finances every three years — the most recent report was issued in September 2020 with data from a survey fielded in 2019. Here’s how net worth stacks up by income, age, family size and education, and how it has changed since 2016.
Less than $20,000
$20,000 to $39,900
$40,000 to $59,900
$60,000 to $79,900
$80,000 to $89,900
$90,000 to $100,000
Less than 35
75 or more
Race or ethnicity
Black or African American non-Hispanic
Hispanic or Latino
Other or multiple race
No high school diploma
High school diploma
Track your money with NerdWallet. Skip the bank apps and see all your accounts in one place. Create my free account.
About the authors: Max Ramirez is a former consumer-finance writer for NerdWallet. Their work has also appeared in USA Today and MarketWatch. Read more
Hal Bundrick is a personal finance writer and a NerdWallet authority in money matters. He is a certified financial planner and former financial advisor. Read more
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc.: Licenses
NerdWallet Compare, Inc. NMLS ID# 1617539
NMLS Consumer AccessLicenses and Disclosures
California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812