
Calculate Net Worth
Generally, the term “net worth” is used to understand the capacity of known faces like big industrialists, celebrities, billionaires, and more. We are least interested in knowing the net worth of someone from your neighbour, right? However, we indeed have nothing to do with knowing others’ net worth; rather, we should focus on ourselves.
No matter whether you have just started your career or are planning for retirement, becoming aware of your net worth gives you a clear view of your financial condition. It is a reflection of how you are doing with your finances, how you are chasing your dreams, and how much you are focused on your goals. To calculate your net worth, you don’t have to hire an accountant, rather, it is extremely easy to calculate.
Here in this blog, we will be letting you know how you can calculate your net worth, along with some other basic information. So, let’s get started,
Table of Contents
What Does Net Worth Mean?
In the most simple terms, net worth is the difference between your assets and your liabilities. Knowing your net worth will give you a clear snapshot of whether you are in the green zone or the red zone. It would help you in the future to make smarter and strategic decisions, like whether you should invest more or pay off debt. So, if you have ever come across this term, stop using Google to know others’ net worth; rather, focus on your finances.
4 Steps To Know Your Net Worth
To know your net worth, you have to be aware of your assets and also of your liabilities. Let’s know them in detail with four significant steps,
Make A List Of Your Assets.
When you are calculating your net worth, you need to have a clear image of your assets, which means things that you currently own.
- Calculate cash
To list out your current assets first, you need to focus on your cash it includes checking your physical cash, accounts, saving accounts, and emergency fund.
- Real estate
Once you are done with calculating your cash, it is high time to focus on your real estate, it includes the market value of your home, you are rental properties, and other land that you own.
- Personal property
Personal property will also be calculated as your net worth, and for that check, the current value of your car, not what you paid during purchase. Calculate the value of your jewellery, art, and other collectibles. In the segment of personal property, electronics and other high-ticket items will also be calculated.
- Your investments
Calculating your net worth would be completely incomplete without checking the valuation of your investments. If you were investing in mutual funds, cryptocurrency, stocks, bonds, and other broker accounts, then calculate the valuation of all the investments.
- Calculate business
If you own a business or have shared in any businesses, then don’t forget to estimate the value.
Make A List Of Your Liabilities.
Once you are done with calculating your ownings, it’s time to calculate what you owe. Here you need to sum up car loans, mortgage, credit card, personal loan, medical bills, student loan, and other debts. Once you are done with making the list, just total it out as it will be your liabilities.
Do The Calculation ( Net Worth Formula )
After making the list of your assets and liabilities, it is the perfect time to start the calculation. The formula is extremely easy,
Total Assets – Total Liabilities = Net Worth
For example,
Your total asset is 48,00,000 and your total liability is 15,00,000, then your net worth will be
4,800,000 – 1,500,000 = 3,300,000
Make A Routine
Checking your net worth quarterly or even once a month can be fruitful for an individual. It helps you to stay motivated and also to witness the real progress. To calculate it regularly and use
- Google Sheets or any other spreadsheet.
- Use budgeting apps or personal wealth tracker apps.
- Maintaining a notebook, the old school and most effective method.
What To Do When Your Net Worth Is Negative?
A negative net worth is a very common thing, especially at your young age. So, avoid getting panic attacks and start paying all the liabilities like mortgage, student loans, and others. A negative net worth simply means that your liabilities are more than your assets.
Always remember that net worth is a moving number, so keep improving yourself and minimizing your liability; it will help you to change the status from negative to positive.
Also, Check – What is NAV?
Wrapping Up
More than your salary and your credit score, this net worth is going to be the clearest reflection of your overall financial capacity. But remember, net worth can be negative, can be small, and it can also be surprisingly high. So, consider it as just data and keep tracking your progress until you reach your goal.
Please share your thoughts on this post by leaving a reply in the comments section. Contact us via Phone, WhatsApp, or Email to learn more about mutual funds, or visit our website. Alternatively, you can download the Prodigy Pro app to start investing today!
How often should one calculate their net worth?
Preferably, once a month and also quarterly you can track your net worth.
Should I include personal belongings like jewellery here?
Yes, you should include jewellery and other personal belongings in your net worth.
Should I consider tax as a liability?
Yes, any kind of tax you pay currently will be calculated as a liability.
What is the basic difference between gross worth and net worth?
The basic difference is, gross worth calculates only the value of your asset without liabilities but net worth basically a result of subtracting liability from your asset.
Disclaimer – This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.

Assistant Vice President – Research & Analysis
Akash Gupta heads the Research & Analysis department at BFC CAPITAL, where he combines in-depth market insights with strategic analysis. He holds multiple certifications, including:
- NISM-Series-XIII: Common Derivatives Certification
- NISM-Series-VIII: Equity Derivatives Certification
- NISM-Series-XXI-A: Portfolio Management Services Certification
- IRDAI Certification
With his expertise in equity, derivatives, and portfolio management, Akash plays a key role in providing research-backed strategies and actionable insights to help clients navigate the investment landscape.