Budget & income
A household balance sheet in two numbers
A net worth calculator: households enter total assets and total liabilities to see net worth and the debt-to-asset ratio, the starting point for any plan.
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How do you calculate net worth?
Add up everything owned (cash, investments, retirement accounts, home and vehicle values) and subtract everything owed (mortgage, loans, card balances). The result is net worth. Dividing liabilities by assets gives the debt-to-asset ratio, which shows how leveraged the household is.
January, as a yearly check-in
Many households track net worth once a year, often in January. Others calculate it for the first time when applying for a loan, planning an estate or meeting a planner.
What the client types into a search box
“what is my net worth”
How a client works through it
Total the assets
Cash, investments, retirement accounts, property and other assets.
Total the liabilities
Mortgage, loans and card balances.
See net worth
Assets minus liabilities.
See the ratio
Debt-to-asset ratio.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
Assets and liabilities show the household's size and leverage. A high debt-to-asset ratio suggests debt planning; large assets suggest investment, tax and estate planning.
Net worth and leverage
Net Worth is the snapshot. Debt-to-Asset Ratio shows the share of assets financed by debt. Total Assets and Total Liabilities confirm the inputs.
The trend over time matters more than one year's figure.
Results shown: Net Worth · Total Assets · Total Liabilities · Debt-to-Asset Ratio.
Why net worth is a planner's first page
Every financial plan starts with a balance sheet. A prospect who has already totaled assets and debts arrives ready for the next conversation.
For CPA firms, net worth changes signal estate and gifting issues.
Follow-ups this request opens
- Build a full financial plan from the balance sheet
- Prioritize debt payoff
- Review estate documents and beneficiaries
- Track net worth each year
What this calculator leaves out
- Snapshot based on entered values.
- No breakdown by asset type.
- Taxes on retirement accounts not deducted.
- Values change over time.
Platform disclaimer shown under the calculator: Estimates only. Net worth is a snapshot based on the values you enter. Asset values change over time.
Compliance note for firms
A net worth snapshot is educational. Financial plans built on it are advice and should follow the firm's planning standards and disclosures.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Net worth
- Total assets minus total liabilities: what would remain if you sold everything you own at the values entered and paid off everything you owe. It can be negative, which is common early in a career or after large student loans. It is a snapshot, so tracking it at regular intervals is more informative than any single reading.
- Assets
- Everything you own that has monetary value: cash, checking and savings balances, retirement and brokerage accounts, your home, other real estate, vehicles and valuable personal property. Use current market values, not what you paid. Retirement accounts will be taxed on withdrawal, so their after-tax value is lower than the balance shown.
- Liabilities
- Everything you owe: mortgage balances, home-equity lines, auto loans, student loans, personal loans, credit-card balances, medical bills and any other debts. Use the current payoff balance, not the original loan amount or the monthly payment. Future interest is not a liability until it accrues, so leave it out.
- Debt-to-asset ratio
- Total liabilities divided by total assets, shown as a percentage. It measures how much of what you own is financed by debt. At 40%, forty cents of every dollar of assets is owed to someone else. Above 100%, you owe more than you own and net worth is negative.
- Liquid assets
- Assets that can be turned into cash quickly without a significant loss of value, such as checking, savings, money market funds and, to a lesser degree, brokerage investments. A high net worth made up mostly of a home or retirement accounts can still leave little cash available for emergencies, which the net worth figure alone does not show.
- Home equity
- The market value of your home minus the mortgage and any home-equity loans against it. For many households it is the largest part of net worth. Count the full home value as an asset and the mortgage as a liability, not the equity as well, or the home will be counted twice.
Net Worth calculator: questions from firms and clients
Should I include my home?
Yes, at a realistic market value, with the mortgage as a liability.
Are retirement accounts counted at full value?
Usually, though pre-tax accounts will be taxed when withdrawn.
What's a good debt-to-asset ratio?
Lower is safer; it typically falls with age.
How often should I calculate it?
Once or twice a year.
Does it include cars?
Yes, at current value.
Is negative net worth bad?
It's common early in a career with student loans; the trend matters.
Does it matter for estate tax?
Large estates may face tax; see the estate tax calculator.
Which plan includes it?
Firm and Network. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Next entry
Answer the January question before the client calls
Embed the Net Worth calculator on your firm's site in an afternoon and receive requests with the numbers already filled in.
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