Net Worth Calculator
A net worth calculator determines your financial health by subtracting total liabilities from total assets. Tracking net worth over time shows whether you're building wealth or losing ground.
Net Worth Formula
Net Worth = Total Assets - Total Liabilities
Assets and Liabilities Categories
| Assets | Liabilities |
|---|---|
| Cash & savings | Credit card debt |
| Investment accounts | Student loans |
| Retirement accounts (401k, IRA) | Auto loans |
| Home value | Mortgage balance |
| Vehicle value | Personal loans |
| Other property | Medical debt |
Net Worth by Age Benchmarks
| Age | Median Net Worth | Average Net Worth |
|---|---|---|
| Under 35 | $14,000 | $76,300 |
| 35-44 | $91,000 | $436,200 |
| 45-54 | $168,000 | $833,200 |
| 55-64 | $212,500 | $1,175,900 |
| 65-74 | $266,400 | $1,217,700 |
Net Worth Calculator Implementation
``javascript
function calculateNetWorth(assets, liabilities) {
const totalAssets = Object.values(assets).reduce((sum, val) => sum + val, 0);
const totalLiabilities = Object.values(liabilities).reduce((sum, val) => sum + val, 0);
const netWorth = totalAssets - totalLiabilities;
return {
totalAssets,
totalLiabilities,
netWorth,
debtToAssetRatio: ((totalLiabilities / totalAssets) * 100).toFixed(1) + '%'
};
}
const assets = { savings: 25000, retirement: 150000, home: 350000, car: 15000 };
const liabilities = { mortgage: 250000, carLoan: 10000, creditCards: 5000 };
console.log(calculateNetWorth(assets, liabilities));
// { totalAssets: 540000, totalLiabilities: 265000, netWorth: 275000 }
`
Improving Net Worth
Increase assets by saving and investing consistently. Decrease liabilities by paying down debt. Track net worth monthly or quarterly to measure progress toward financial goals.
The Projection Behind This Page
Starting from $100,000, adding $200 a month at 5%:
| Year | Deposited | Balance | Growth | Growth on deposits |
|---|---|---|---|---|
| 1 | $102,400 | $107,572 | $5,172 | 5% |
| 5 | $112,000 | $141,937 | $29,937 | 27% |
| 10 | $124,000 | $195,757 | $71,757 | 58% |
After 10 years, 37% of the balance is growth rather than money you
put in. That crossover — the point where returns exceed contributions — is the whole reason
compounding is worth waiting for, and it arrives later than most people expect.The Formula
`
A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) − 1) ÷ (r/n)]
└── initial principal ──┘ └────── regular contributions ──────┘
`
The second term usually dominates. On these numbers the $200 monthly contribution
accounts for the larger share of the final balance, which is the practical lesson: how much
you add matters more than the rate, right up until the balance gets large.
How Long Until It Doubles
The Rule of 72 divides 72 by the rate to estimate doubling time. At 5%:
`
72 ÷ 5 = 14.4 years
`
The exact answer is 14.2 years — the rule is accurate to within a few months
for rates between 6% and 10%, and drifts at the extremes. It works because ln(2) ≈ 0.693 and
72 has convenient divisors.
| Rate | Rule of 72 | Exact |
|---|---|---|
| 2% | 36.0 yr | 35.0 yr |
| 5% | 14.4 yr | 14.2 yr |
| 7% | 10.3 yr | 10.2 yr |
| 10% | 7.2 yr | 7.3 yr |
| 15% | 4.8 yr | 5.0 yr |
Compounding Frequency at This Rate
A nominal 5% turns into a different effective yield depending on how often it
compounds:
| Compounded | Effective annual yield |
|---|---|
| Annually | 5.000% |
| Quarterly | 5.095% |
| Monthly | 5.116% |
| Daily | 5.127% |
| Continuously | 5.127% |
The gap between annual and monthly is worth having. The gap between monthly and daily is
0.011 percentage points — rounding. Compare accounts on
APY, which already folds the frequency in, rather than on the nominal rate.Inflation Is the Number That Matters
A 5% nominal return against 3% inflation is a 2.0% real return.
Real return is what buys anything:
`
real ≈ nominal − inflation
``
Over 14 years, 3% inflation cuts purchasing power by about 34%. A projection quoted in nominal dollars therefore overstates what the money will actually be worth, which is why retirement targets are usually stated in today's dollars.