Net Worth
The value of everything you own minus everything you owe — the clearest snapshot of financial health.
What does net worth mean?
Add up your assets (cash, investments, retirement accounts, property) and subtract your liabilities (mortgage, loans, credit-card debt). Tracking net worth over time shows whether you’re moving in the right direction.
Related terms
Net Worth — frequently asked
How do I calculate my net worth?
Add up everything you own — cash, investments, retirement accounts, home and car values — then subtract everything you owe, such as mortgages, loans and card balances. The result, which can be negative early on, is your net worth.
What is a good net worth by age?
A common benchmark is to have roughly 1× your salary saved by 30, 3× by 40 and 6× by 50, but ranges vary widely. Trend matters more than any single number — a net worth that grows year over year is the real goal.