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Math of Money
Savings & Investing · Glossary

Net worth

Total assets minus total liabilities — the snapshot value of your financial position, showing how much you truly own after accounting for everything you owe.

Net worth = total assets − total liabilities. Assets include cash, savings accounts, investment and retirement accounts, real estate equity, vehicles, and any other property with value. Liabilities include mortgage balances, car loans, student loans, credit card balances, and other debts.

A positive net worth means you own more than you owe; a negative net worth — common early in life — means your debts exceed your assets. The direction of change over time matters more than any single number. Consistent saving and debt repayment move it upward.

Calculators that use this

Net Worth CalculatorAdd up your assets and liabilities to see your net worth and debt-to-asset ratio.Investment CalculatorProjected growth of a lump sum or recurring investment.Budget CalculatorSplit take-home pay into needs, wants, and savings with the 50/30/20 rule.

Related terms

Debt-to-asset ratioCompound interestAll terms →

Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.