Net Worth
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It is the most comprehensive single-number measure of financial health.
Assets include cash, investments, real estate equity, vehicles (at market value), and any other valuables. Liabilities include mortgages, car loans, student loans, credit card balances, and any other debts.
Net Worth = Total Assets − Total Liabilities. A positive net worth means assets exceed debts; negative means you owe more than you own — common early in life with student debt and limited savings.
Average net worth in the US varies enormously by age: roughly $76,000 for ages 35–44 at the median, and $1.7M at the mean (skewed by ultra-high earners).
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Open calculator →Related terms
- Financial Independence (FI)
- Financial independence means having enough invested assets to cover your living expenses indefinitely without working. It is the point where your investment returns equal or exceed your annual spending.
- FIRE Number
- Your FIRE number is the portfolio size needed to retire early and live off investment returns indefinitely. It is calculated as your annual expenses multiplied by 25 (the inverse of the 4% safe withdrawal rate).
- Debt-to-Income Ratio (DTI)
- The debt-to-income (DTI) ratio is your monthly debt payments divided by your gross monthly income, expressed as a percentage. Most lenders require a DTI below 43% to qualify for a mortgage.