Net Worth Calculator
Get a clear snapshot of your financial health. Track your assets, liabilities, and progress towards your wealth goals.
Quick Use Samples
Assets
Liabilities
Your Net Worth
Financial Health Metrics
Your calculated net worth is $505,000. This is the result of subtracting your total liabilities of $470,000 from your total assets of $975,000. A positive net worth is a great sign of financial health. Your debt-to-asset ratio is 48.2%. This ratio is a key indicator of your financial leverage. A lower ratio is generally better, but a 'healthy' ratio can vary by age. For example, a younger person might have a higher ratio due to a mortgage, while someone nearing retirement would aim for a very low ratio.Tracking your net worth annually is a powerful way to measure your progress towards your financial goals.
Asset vs. Liability Breakdown
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What is Net Worth?
Net worth is the ultimate measure of your financial health. It's a simple calculation: the total value of everything you own (your assets) minus the total value of everything you owe (your liabilities). It provides a clear snapshot of your financial position at a single point in time, and tracking it is one of the best ways to measure your progress towards financial goals.
Behind the Formula
The formula is deceptively simple: Assets - Liabilities = Net Worth. The calculator sums up all the assets you list—like the market value of your home, your superannuation balance, savings, and investments. It then sums up all your liabilities, such as your mortgage balance, car loans, and credit card debt. The difference between these two totals is your net worth.
Expert Insights
- Your family home is a unique asset. While it's a huge contributor to net worth for most Australians, its value isn't 'liquid'. You can't easily spend it. That's why some financial planners track 'liquid net worth' (excluding property) as a separate, important metric.
- Net worth isn't a competition. It's a personal tool. A young doctor with a high income but large student debts might have a lower net worth than an older tradesperson who has paid off their home, and that's perfectly normal. Your focus should be on your own progress over time.
- In Australia, superannuation is often the second-largest asset for most people after their home. Don't neglect it in your net worth calculation; it's a critical component of your long-term wealth.
Actionable Tips
- Calculate your net worth annually. This allows you to track your progress, celebrate milestones, and make adjustments to your financial plan if you're not on track.
- Focus on both sides of the equation. You can increase your net worth by acquiring more assets (investing, saving) or by paying down your liabilities (making extra mortgage or loan repayments). A balanced approach is often the most effective.
- Use your net worth calculation to set clear goals. For example, 'I want to increase my net worth by $50,000 in the next year.' This gives you a tangible target to work towards.
Real-World Examples
A Young Family
A couple owns a home valued at $700,000 with a $500,000 mortgage. They have $120,000 in combined super and a $20,000 car loan. Their net worth is ($700k + $120k) - ($500k + $20k) = $300,000.
A Renter Focusing on Investing
A single person rents an apartment but has been diligently investing. They have $250,000 in an share portfolio, $80,000 in super, and a $5,000 credit card debt. Their net worth is ($250k + $80k) - $5k = $325,000.
Nearing Retirement
A couple in their early 60s has paid off their $1M home. They have a combined $900,000 in super and $150,000 in other investments, with no debts. Their net worth is a strong $2.05 million, putting them in a great position for retirement.
Glossary of Terms
Asset
Anything you own that has monetary value, such as property, investments, superannuation, or cash.
Liability
Any money you owe to others, including mortgages, loans, credit card debt, and student loans.
Liquidity
The ease with which an asset can be converted into cash. Your savings account is very liquid; your house is not.