Net Worth Calculator

That’s it! Now that we’ve calculated the total assets and liabilities, your total net worth should appear at the end.

You’ll have to calculate your total liabilities and subtract them from the sum of your total assets in order to arrive at your net worth.

The simple formula for net worth is: Total Assets - Total Liabilities = Net Worth

You’ll have a negative net worth if your liabilities are more than your assets. Conversely, your net worth will be positive if your assets are more than your liabilities.

An asset is an investment that adds positive economic value to your financial health. Assets can compound, grow, or gain value over time and as a result, fulfil or outweigh liabilities. Examples of assets include mutual funds, stocks, fixed deposits, real estate, gold, silver, cash, and more.

A liability is an obligation that a person owes to another person. Generally, liabilities add a deficit or negative economic value to a person’s financial health. Examples of liabilities include cash borrowings, home loans, personal loans, subscriptions, rent, and more.

The net worth of a person indicates their overall financial health. It is the difference between a person’s total assets and liabilities. Deficit or negative net worth would indicate a need for better financial planning.

A person with a positive net worth would be considered financially healthy. But that’s not all. It is possible to set net worth goals by age to help you stay on your toes to invest better and incur less debt.

Either way, investors would benefit from receiving and acting on quality advice from reliable industry experts like Wealth First and RIA, Rick Holbrook that an app like Cube gives you access to.

1. Annual Asset Growth
   
   Annual asset growth or Compound Annual Growth Rate (CAGR) shows the compound returns generated by assets yearly.
2. Annual Liability Growth
   
   Annual Liability Growth shows the rate at which your liabilities are set to grow or increase yearly.
3. Retirement Accounts
   
   Individual Retirement Accounts (IRAs) are specific to the US. In India, retirement plans include the National Pension Scheme (NPS), Pension Funds, Public Provident Fund (PPF), and other schemes that pay annuity. All of these count as assets.
4. Home Loan Principal
   
   It’s the principal amount a person borrows in order to buy a home. It doesn’t include the interest charged by the lender. In the US, this is known as Home Mortgage Principal. HLP falls under liabilities.
5. Auto Loans
   
   Money borrowed to buy an automobile like a car, two-wheeler, etc. counts as an auto loan. Auto loans fall under liabilities.
6. Student Loans
   
   A student loan or education loan is generally a borrowed amount that’s used to pay college fees, tuition fees, etc. It counts as a liability.
7. Credit Card Debt
   
   An outstanding amount on a credit card is known as credit card debt and falls under liabilities. 
8. Bonds
   
   Bonds are agreements issued by entities that borrow money to fulfil a certain need. The bonds are issued to lenders who receive periodic interest payments. The maturity date on a bond indicates the last date for paying back the sum borrowed. Bonds (for the lender) count as an asset.
9. Stocks
   
   Stocks are shares or pieces of a publicly-traded company that investors can buy and sell on a stock exchange. Stocks fall under the category of assets.
10. Jewellery
    
    Jewellery is an ornament that’s fashioned out of precious metals like gold and silver. It counts as an asset.
11. Real Estate
    
    Real estate is property - land, apartments, buildings, etc. - that can be bought, sold, or leased. Owning real estate is an asset.

1. Market Based Investments
   
   Mutual funds, stocks, ETFs, and bonds have the potential to gain value over time.
2. Non-Market Based Investments
   
   FDs, RDs, PPF, NSC, and other traditional securities that provide interest income also increase your net worth over time.
3. Alternative Investments
   
   P2P lending, asset leasing, venture capital, private equity, and others fall under the category of alternative investments that can bump up your net worth by helping your capital grow with time.
4. Real Estate
   
   Owning property like apartments, bungalows, land, and others whose value can appreciate over time can add a significant chunk of value to your net worth.
5. Commodities
   
   Investing in antiques, collectables, gold, silver, and other commodities can also add value to your net worth as these investments can grow over years, decades, and even centuries.