The Easiest Way to Calculate Your Personal Net Worth (+ Free Net Worth Spreadsheet)

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The first time I calculated our personal net worth, every muscle in my body was tense. We had just bought our first house and had more debt than we knew what to do with. The truth is no one’s really keeping score except you but it’s disheartening to think after all your hard work you could end up with negative net worth.

Your net worth is not a final judgement and if you don’t like what you see remember you are not powerless to change the situation. Calculating your net worth is a way to help you better understand your overall financial health. You can use it to track your financial progress and see the big picture.The Easiest Way to Calculate Your Personal Net Worth (+ Free Net Worth Spreadsheet)

Let’s look at how you calculate your net worth.

Net worth is taking what you own and subtracting what you owe. It’s the total value of your assets after you pay off all your liabilities. For example, if you own a home that’s worth $400K and you owe $150K you have $250K in equity toward your net worth.

Assets (own) – Liabilities (owe) = Net Worth

First, make a list of your assets with their current value. Calculate what their estimated value would be if you sold them today.

List your assets (what you own) and add up the total.

  • Cash
  • Savings
  • Checking accounts
  • Retirement accounts
  • Brokerage and investment accounts
  • College savings
  • Life insurance policies (cash surrender value)
  • Business interests
  • Your home
  • Real estate
  • Cars, Trucks, Boats
  • Artwork, jewelry and furniture

Now, list your liabilities (what you owe) and add up the total.

  • Credit card debt
  • Home mortgage
  • Home equity
  • Bank loans
  • Personal loans
  • Auto loans
  • Student loans
  • Bills/medical bills
  • Other debts

To determine your net worth you’ll subtract your liabilities from your assets.

How did you do? Need some help? Download my calculate your personal net worth spreadsheet.

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The Easiest Way to Calculate Your Personal Net Worth (+ Free Net Worth Spreadsheet)