What is the Net Worth?
Net worth is everything you own minus everything you owe. It is the only measure that captures your whole financial position — income tells you nothing about wealth, and a high salary with high debt can mean negative net worth.
Tracked quarterly, the trend matters far more than the absolute number.
Formula & worked example
Worked example: ₹8 lakh cash + ₹45 lakh investments + ₹90 lakh property + ₹12 lakh other = ₹1.55 crore of assets. Subtracting a ₹42 lakh home loan and ₹3.5 lakh of other debt gives a net worth of ₹1.095 crore, with a debt-to-asset ratio of 29% — comfortably healthy.
How to use this net worth calculator
- Value assets at what you could realistically sell them for, not what you paid.
- Include EPF, PPF and NPS balances under investments — they are genuinely yours.
- Enter outstanding balances on loans, not original amounts.
- Recalculate every quarter and watch the direction of travel.
Smart tips
- Liquid net worth (excluding property) matters more for flexibility. Property-heavy net worth cannot pay for an emergency.
- Depreciating assets like cars should be valued at resale price, which is often far below expectation.
- A debt-to-asset ratio under 40% is comfortable; above 60% leaves little room for a shock.
- Do not count your provident fund as spendable — it is locked, but it is still net worth.
- Rising net worth with falling income is fine. Rising income with flat net worth means the money is leaking.
Frequently asked questions
How do I calculate my net worth?
Add every asset at current market value, then subtract every outstanding debt. The result can legitimately be negative early in a career.
Should I include my house in net worth?
Yes, at market value, with the outstanding loan subtracted. Also track liquid net worth separately, since a home cannot fund emergencies.
What is a good net worth for my age?
One common benchmark is annual income × age / 10. It is only a rough guide — savings rate and starting point matter far more.
How often should I check net worth?
Quarterly is ideal. Monthly invites reaction to market noise; annually is too infrequent to catch problems.
Want the theory behind the numbers? Read our net worth guides on the Money Blog.