Short answer: add up everything you own, add up everything you owe, and subtract the second number from the first. That’s it. So, how do you find your networth in practice? Here’s the full process, a worked example with made-up numbers, and a reality check against national data.
Step 1: List your assets
Assets are things with money value. Use today’s realistic market value, not what you paid.
- Cash: checking, savings, cash on hand
- Investments: brokerage accounts, 401(k), IRA, HSA, other retirement plans
- Property: home value, land, rental property
- Vehicles: use a resale estimate from a pricing guide
- Business interests: your share of a company, if you own one
- Other: valuable collectibles, jewelry, or items you could actually sell
Be conservative with household goods. Your sofa isn’t worth what you paid for it. Many people leave out furniture and clothing entirely.
Step 2: List your liabilities
Liabilities are what you owe.
- Mortgage balance and home equity loans
- Auto loans
- Student loans
- Credit card balances
- Personal loans, medical debt, money owed to family
- Any tax bill you owe
Use the payoff balance, not the monthly payment. Log in to each lender or check a recent statement.
Step 3: Subtract
Net worth = total assets minus total liabilities
If the result is negative, you owe more than you own. That’s common for recent graduates and isn’t a life sentence.
A worked example (hypothetical numbers)
Meet Sam, a fictional 35-year-old. These figures are invented for illustration.
| Item | Amount |
|---|---|
| Checking and savings | $18,000 |
| Retirement accounts | $72,000 |
| Brokerage account | $9,000 |
| Home value | $320,000 |
| Car (resale) | $11,000 |
| Total assets | $430,000 |
| Mortgage balance | $255,000 |
| Student loans | $14,000 |
| Car loan | $6,000 |
| Credit card | $2,000 |
| Total liabilities | $277,000 |
Sam’s net worth is $430,000 minus $277,000, which equals $153,000. Notice that most of it sits in home equity. If housing prices dipped 10 percent, about $32,000 would vanish from the total.
How do you find your networth and compare it?
Once you have a number, context helps. The Federal Reserve runs the Survey of Consumer Finances every three years. In its 2022 survey, reported in the October 2023 bulletin on changes in family finances from 2019 to 2022, median family net worth was about $192,900, and the mean was roughly $1.06 million, both in inflation-adjusted dollars. The huge gap between the two shows how much the wealthiest households pull the average up.
So the median is the better yardstick for a typical family. Net worth also rises with age, since older households have had more time to save and pay down debt. Don’t beat yourself up over comparisons. A 28-year-old with student loans and a 58-year-old homeowner are simply in different places.
Tips for an accurate number
- Use the same date for everything. Pick the last day of the month.
- Don’t count future income. Only things you own now.
- Consider taxes on retirement accounts. A traditional 401(k) balance will be taxed when withdrawn, so some people discount it mentally.
- Be honest about illiquid assets. A house can’t pay your electric bill tomorrow.
- Track it regularly. Quarterly is plenty.
What to do with the number
Asking how do you find your networth is the easy part; deciding what to change is harder. The figure itself matters less than its direction. If it’s rising, keep going. If it’s flat or falling, look at where the leak is: high-interest debt, spending that outpaces income, or investments sitting in cash. Paying off a 24 percent credit card is a guaranteed improvement in a way few investments can match.
Free spreadsheets or budgeting apps can automate the list. Even a simple notebook works. What counts is that you check in on a schedule and watch the trend.
Common questions
Should I include my home?
Yes, at a realistic market value, and subtract the mortgage. Just remember it’s not liquid.
Do retirement accounts count?
Yes. They’re yours, though withdrawing early can trigger penalties and taxes, so some people track a separate liquid net worth that excludes them.
How often should I recalculate?
Once a quarter is enough for most people. Monthly works if you’re actively paying down debt and want to see progress.
Related reading: how to calculate your own net worth step by step and what counts as a good net worth.
This is general information, not financial advice.
