Net worth is the value of everything you own minus everything you owe. Choose a date, list each asset at a reasonable current value, list each liability at its current outstanding balance, total both columns, and subtract liabilities from assets. The result is a dated financial snapshot—not a permanent score and not a measure of your personal worth.
The net-worth formula
The calculation is:
Net worth = total assets − total liabilities
Assets are things with financial value that you own or have a claim to. Liabilities are debts and other amounts you currently owe. If assets exceed liabilities, the result is positive. If liabilities exceed assets, the result is negative.
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Investor.gov, the U.S. Securities and Exchange Commission’s investor-education site, describes the essential action plainly: “Subtract your liabilities from your assets.” Its sample net-worth statement is a balance-sheet-style snapshot, not a forecast of investment returns or a monthly budget.
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Because account balances and market values change, write the measurement date at the top of the statement. A figure dated October 18, 2026, should be compared with another figure prepared on a comparable date, not with an undated number from an earlier period.
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Decide what your statement will cover
Use a consistent household scope
Before collecting numbers, decide whose finances are included. For an individual snapshot, include only accounts, property and debts that belong to that person. For a household view, include the partners’ and dependents’ relevant assets and liabilities according to how the household manages money. Record the scope in a note so the next statement uses the same boundary.
The SEC and Consumer Financial Protection Bureau (CFPB) examples are checklists, not a rule that every person must own or report every category. A renter with no investments will have a shorter statement than a homeowner with retirement accounts and a business interest.
Pick one measurement date
Use a date on which you can obtain most account balances. Statements, online account screens and lender portals may show balances from different days, so record the date beside each number when the timing matters. For an account that reports a statement balance rather than a same-day balance, label what the number represents instead of presenting it as more precise than it is.
Gather records before entering figures
- Recent checking, savings and cash-account balances.
- Retirement and investment-account statements.
- Mortgage, credit-card, auto, student and other loan balances.
- Documents or reasonable estimates for a home, other real estate, vehicles and valuable personal property.
- Any records needed to identify cash value in a life-insurance policy or an ownership interest in a business.
A spreadsheet, notebook or blank personal-finance worksheet is sufficient. The SEC’s own guide includes a fill-in net-worth statement, so a paid planner is not required.
List and value your assets
Create one line for every material asset rather than entering one unexplained total. Keeping the line items makes an unexpected change traceable and helps prevent double counting.
Cash and deposit accounts
Enter physical cash if you want it included, then list checking, savings and other deposit accounts separately. Use the balance shown by the relevant account record. If two accounts are held at the same institution, keep separate lines until you have checked the totals.
Retirement accounts and other investments
Include workplace retirement plans, individual retirement accounts, brokerage accounts, mutual funds, bonds, publicly traded shares and other investments that belong in your chosen household scope. Use the current account value available for the measurement date. If an account contains several investments, you may record the account’s total and retain the statement for detail.
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Do not count a transfer twice—for example, once in a checking account and again as money “set aside” for an investment. The cash belongs in whichever account actually held it on the date.
Real estate
Record a reasonable current value for a home, land or other real estate. The SEC template calls for each asset’s “Current Value,” but its general guidance does not prescribe one valuation method for every property type. Clearly mark the figure as an estimate and include the date or basis used, such as a recent professional valuation, a documented comparable estimate or another method you can apply consistently.
If you own a home worth $400,000 and owe $300,000 on its mortgage, enter the $400,000 home value in assets and the $300,000 mortgage balance in liabilities. The subtraction produces $100,000 of home equity within net worth. Do not enter only $100,000 as the asset and then subtract the mortgage again.
Cash value of life insurance
The SEC sample statement includes the cash value of life insurance. Include the current cash value only when the policy actually has one and the amount is available from a policy record. Do not treat a death benefit as cash you currently own for this general personal statement.
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Business interests and other investments
The CFPB lists businesses among possible assets. If you own part of a business, record a reasonable current estimate of that interest and identify it as an estimate. A private business may not have a readily observable market price; preserve the explanation used so future statements remain comparable.
Personal property
Vehicles, valuable jewelry, collectibles and other personal property can be listed when they are financially material to your picture. Use a reasonable current estimate, not an unsupported level of precision. Everyday household goods may be omitted if including them would add effort without changing the decision you are trying to make; note the policy so a later statement does not silently change scope.
List your liabilities at outstanding balances
Liabilities belong in a separate column or section. Enter what is currently outstanding, not the original amount borrowed and not the sum of all future scheduled payments.
Mortgage and home-secured debt
List the mortgage balance and any home-equity loan or line of credit separately when the lender records them separately. Use the current outstanding amount shown by the lender.
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Include the balance owed on each card as of the chosen date. If a card’s displayed balance and the amount on its latest statement refer to different dates, label the date used.
Auto, bank and personal loans
Record current balances for vehicle loans, personal loans, lines of credit and other bank debt. Keep a separate line for each loan so a payoff or refinancing can be identified later.
Student loans and other obligations
Include student loans and any other debt with a current outstanding balance. The SEC sample statement specifically names mortgage, credit-card, bank, auto, student and other loans as liability categories.
Do not subtract a debt from assets at the time you list the asset and then subtract it again in the liability section. Every obligation should appear once in the liabilities total.
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- Write the date and scope. State the measurement date and whether the statement covers you alone or your household.
- Enter each asset. Add cash, deposit accounts, retirement accounts, other investments, real estate, cash-value life insurance, business interests and material personal property that fit your scope.
- Label estimates. Mark property and other non-statement values as estimates, with the date or basis used.
- Add the asset column. Check that each account or property item appears once.
- Enter each liability. Record current balances for mortgages, credit cards, bank and personal loans, auto loans, student loans and other debts.
- Add the liability column. Reconcile the total to lender and card records where possible.
- Subtract. Calculate total assets minus total liabilities. Preserve the line items and source dates with the result.
- Save the statement. Keep the dated version so the next update can use the same categories and reveal what changed.
Worked example
The following numbers are illustrative. They show the arithmetic, not a benchmark or a recommended asset mix.
| Assets | Value | Liabilities | Balance |
|---|---|---|---|
| Checking and savings | $18,000 | Mortgage | $270,000 |
| Retirement accounts | $145,000 | Credit cards | $6,500 |
| Taxable investments | $32,000 | Auto loan | $14,000 |
| Home (estimated current value) | $410,000 | Student loan | $22,000 |
| Vehicle and personal property (estimated) | $24,000 | Other loan | $3,500 |
| Total assets | $629,000 | Total liabilities | $316,000 |
Net worth = $629,000 − $316,000 = $313,000. The home and personal-property figures are estimates, so the statement should preserve how and when those estimates were made. If the home estimate changes while the mortgage balance does not, net worth changes even though no cash moved into or out of the household.
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How to handle estimates and uncertain values
Some entries have an observable balance; others require judgment. Treating both as equally exact can make a statement look more precise than it is.
- Separate recorded balances from estimates. Account and lender records generally provide a stated balance. Property, private businesses and some personal items require an estimate.
- Use a repeatable method. The official templates request current values but do not prescribe one universal valuation method for every asset. Choose a reasonable method, document it and apply it consistently.
- Use a date. Write the estimate date beside the number. A property estimate from one year should not be silently compared with a lender balance from another period.
- Use ranges only if they improve the decision. If an asset’s value is genuinely uncertain, you can maintain a low and high case in your notes, while keeping one clearly identified figure in the main statement. Do not present the range as an official appraisal.
- Do not inflate precision. Entering $23,847 for an item that was only roughly assessed does not make it more accurate.
Checks that catch common errors
Check for double counting
Trace every large number back to an account, document or estimate. Cash moved from checking to a brokerage account is still one pool of money, not two assets. A home’s value is an asset; its mortgage is a liability.
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Check dates
Write the date beside balances that came from different records. If a market account value is from one day and a bank balance is from another, the total is still usable as an estimate, but the timing limitation should be visible.
Check debts against current balances
Original loan amounts, credit limits and monthly payments are not the same as outstanding principal or current balance. Use the amount currently owed for the statement’s date.
Check the household boundary
An apparent jump or drop can result from adding a partner’s account, removing a debt or changing whether a vehicle is included. Compare statements only after confirming that their scope and categories match.
Check signs and arithmetic
Assets go in the asset total and debts go in the liability total. A liability total greater than the asset total produces a negative net worth; that is an arithmetic result, not an error by itself.
What a positive or negative result tells you
A positive result means the listed assets exceed the listed liabilities at the chosen date. A negative result means the listed liabilities exceed the listed assets. Neither result is a moral judgment, a credit score or a prediction.
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The number can help you see whether debt reduction, saving, investing or a change in a major asset is moving the balance over time. It cannot, by itself, tell you whether you can pay bills next week, how much cash is immediately available, how stable your income is or how secure you feel.
Net worth is not the same as financial well-being
The CFPB cautions that financial well-being is difficult to measure with numbers such as income, net worth or a credit score alone. Its broader framework includes control over day-to-day finances, the capacity to absorb a financial shock, progress toward goals and freedom of choice.
Use the net-worth statement alongside a cash-flow view. A household can have substantial home equity but little readily available cash, or a temporarily negative net worth while building education or retirement assets. Those situations require different decisions even when the arithmetic is clear.
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Investor.gov recommends updating a net-worth statement every year. An annual update on a consistent date gives you a practical baseline without implying that you must recalculate after every market movement. You may also update after a major event such as buying a home, paying off a loan, receiving an inheritance or changing household scope.
For each new statement, keep the same category structure, record the new measurement date and distinguish account balances from estimates. When the total changes, compare the line items rather than relying on the headline number: investment values, property estimates, debt paydowns and newly included accounts may each contribute.
Do not reuse a general estimate for a formal purpose without checking the rules
A personal net-worth statement is a general planning tool. A legal proceeding, tax filing, lending application, benefit calculation or securities-related requirement may define assets, liabilities, ownership, valuation dates and disclosures differently. If you need a figure for one of those purposes, follow that program’s instructions or consult an appropriately qualified professional instead of assuming this general worksheet satisfies the formal test.
A reusable net-worth worksheet
Copy this structure into a spreadsheet or notebook and add rows as needed.
| Asset or liability | Amount | Date | Recorded balance or estimate? | Notes or source |
|---|---|---|---|---|
| Asset 1 | ||||
| Asset 2 | ||||
| Asset 3 | ||||
| Total assets | ||||
| Liability 1 | ||||
| Liability 2 | ||||
| Liability 3 | ||||
| Total liabilities | ||||
| Net worth (assets − liabilities) |
Save each dated version. The value of the worksheet is not just the final subtraction; it is the audit trail showing which balances, estimates and scope produced that result.
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