Net Worth Calculator
Net worth is the worth of an individual calculated by subtracting liabilities from assets. In other words, by subtracting debts from an individual's assets, net worth is calculated. Net worth is a very well known metric used to measure the worth and financial health of individuals. It is used by those just getting started on their personal finance journey and the wealthy alike.
How This Net Worth Calculator Works
This net worth calculator asks the user to enter individual items related to their assets and liabilities. Then it adds those up and subtracts them in order to arrive at the users calculated net worth. It is difficult for a person to add up their assets and liabilities in their head at once. This calculator lets the individual calculate their net worth by adding smaller, individual dollar amounts together.
Net Worth Calculator Glossary of Terms
Assets - Assets are anything that a person owns that possesses market value. In other words, if it was sold today, what would it sell for. This can be difficult to estimate since not all assets are liquid or easily sold. This makes estimating their value challenging.
Home Value - The market value of one's primary residence if sold today.
Automobiles - The market value of any automobiles that one owns if they were sold today.
Individual Retirement Accounts - These include any IRAs such as traditional IRAs, Roth IRAs, 401k's or some other variation of a retirement account that a person has set up.
Brokerage Accounts - Brokerage accounts are any retirement accounts that are not inside of a retirement account.
Cash Value Life Insurance - Any cash value that one has stored up inside of a permanent or whole life insurance policy.
Checking, Savings, & CDs - Any liquid bank account such as a savings account, checking account, or certificate of deposit account. Include cash in this category.
Precious Metals - This includes the market value of any gold or silver owned outside of a retirement account.
Other Real Estate Value - All real estate owned not including the primary residence. This may include the market value of any rental property or secondary residences owned.
Liabilities - Liabilities include any debts or money owed to other individuals. This may include student debt or mortgage debt as a couple examples.
Home Mortgage Debt - Any debt balance owed on a home mortgage or home loan. Home equity will be calculated automatically.
Auto Loans - The loan balance on any debt owed on automobiles or vehicles.
Student Debt - The loan balance on any debt owed on college or student loans.
Credit Card Debt - The loan balance on any debt owed on credit cards.
Other Debt - The loan balance on any miscellaneous debts that don't fit into one of the categories above.
Other Mortgage Debt - The loan balance on any other mortgage loans such as a loan on a rental property.
