Net Worth Formula
Debt-to-Asset Ratio = Total Liabilities / Total Assets × 100%
What Counts as an Asset?
| Liquid Assets | Investment Assets | Physical Assets |
|---|---|---|
| Checking account | Stocks & ETFs | Primary home value |
| Savings account | 401(k) / IRA | Investment properties |
| Money market | Mutual funds | Vehicles |
| Cash on hand | Bonds | Business equity |
| CDs / T-bills | Crypto | Jewelry / collectibles |
What Counts as a Liability?
| Secured Debt | Unsecured Debt |
|---|---|
| Mortgage balance | Credit card balances |
| Auto loan balance | Student loan balance |
| Home equity loan | Personal loans |
| Business loans | Medical debt |
| Investment property mortgage | IRS tax debt |
Frequently Asked Questions
What is the average net worth by age in the US?
According to Federal Reserve data, median net worth by age group (approximately): Under 35: ~$39,000; 35–44: ~$135,000; 45–54: ~$247,000; 55–64: ~$365,000; 65–74: ~$410,000; 75+: ~$335,000. Mean (average) net worth is much higher than median due to wealth concentration at the top.
Should I include my home in net worth?
Yes — include your home's current market value as an asset, and subtract your remaining mortgage balance as a liability. The difference (home equity) contributes to net worth. However, your primary home is an illiquid asset — financial planners often track "investable net worth" separately, excluding primary residence equity.
How often should I calculate my net worth?
Quarterly or annually is sufficient for most people. Tracking net worth over time reveals your financial trajectory — whether you're building wealth or going backward. The trend matters more than any single snapshot.