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Short answer
Net worth is everything you own minus everything you owe. Count your home at market value minus the mortgage, vehicles at resale value, and retirement accounts at balance, remembering that pre-tax balances will be taxed: $500,000 at 24% is about $380,000 after tax.
1. Assets to include
- Cash, checking, savings
- Investments and brokerage accounts
- Retirement accounts (401(k), IRA, Roth)
- Home at current market value
- Vehicles at resale value, not purchase price
- Business interests
2. Liabilities to subtract
- Mortgage and home equity loans
- Auto loans and student loans
- Credit card balances
- Personal loans and any tax owed
3. Judgment calls
- Couples: add up household assets and debts together.
- Pre-tax retirement money: traditional balances are taxed on withdrawal. At an assumed 24% rate, $500,000 is about $380,000 after tax. Roth balances generally are not.
- Personal belongings: furniture and clothing resell for little, so most people leave them out.
Put the totals in the Net Worth Calculator. See also how you compare by age.
4. Frequently asked questions
How do I calculate net worth?expand_more
Add up everything you own and subtract everything you owe.
Should I count my home in net worth?expand_more
Yes, at current market value less the mortgage and any other loans against it.
Do retirement accounts count?expand_more
Yes. For a cautious view subtract the tax you expect to owe on pre-tax balances.
How do couples calculate net worth?expand_more
Combine household assets and debts into one total.