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.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.