Understand how to calculate your net worth and try our net worth calculator. It works on certain principles and requires you to enter your financial details to measure your net worth correctly.
Calculate Net Worth
What is Net Worth?
Net worth is the amount of money you have after paying off everything you owe. It shows the difference between what you own (called assets) and what you owe (called liabilities). In simple terms, it’s a way to see how much you are financially worth.
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How to Calculate the Net Worth?
To calculate net worth, the formula is:
Net Worth Formula:
Net Worth = Total Assets − Total Liabilities
Assets are things you own and can sell for money, like a house, car, or cash. Liabilities are debts or money you owe to others, like a loan or credit card bill.
If your assets are more than your liabilities, you have a positive net worth. If your liabilities are higher than your assets, your net worth is negative.
How the Net Worth Calculator Works?
This tool helps you calculate your net worth by organizing your assets and liabilities into two easy sections.
Assets Section
In this section, you enter the value of everything you own. These are called assets. The tool includes:
- Investments: The value of stocks, bonds, or any other money you’ve invested.
- Fixed Deposits & Savings: Any money saved in the bank.
- Cash & Bank Balances: The amount of money you have in hand or your bank accounts.
- Real Estate: The current value of your home or any other property.
- Gold & Jewelry: The value of any gold, jewellery, or expensive items you own.
- Other Assets: Anything else you own that can be sold for money.
Liabilities Section
In this section, you list the debts and amounts you owe. These are called liabilities. The tool includes:
- Home Loan: The amount of money you still owe on your house.
- Personal Debt: Any loans or money borrowed from others.
- Pending Taxes: Taxes you still need to pay.
- Bills: Any unpaid bills.
- Credit Card Debt: The money you owe on your credit cards.
- Other Liabilities: Other debts not listed above.
Calculate Your Net Worth
After entering your assets and liabilities, click the “Calculate” button. The tool will:
- Add up all your assets (the things you own).
- Add up all your liabilities (the debts you owe).
- Subtract your liabilities from your assets to calculate your net worth.
The tool will then show your total assets, total liabilities, and net worth in an easy-to-read format. You’ll also see a pie chart that breaks down your assets and liabilities so you can better understand the numbers.
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Summary
This tool makes it easy to find out your net worth by organizing your financial details. You simply enter what you own and what you owe, and the tool does the math for you. The chart helps you visualize your finances, making it easier to manage your money.
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