Net worth is the single clearest number for tracking your financial health over time. Add up everything you own, subtract everything you owe, and see where you stand.
Formula
Net Worth = Total Assets − Total Liabilities
Example: ₹15 lakh in savings/investments + ₹50 lakh house value = ₹65 lakh assets. Minus a ₹30 lakh home loan balance = ₹35 lakh net worth.
Frequently Asked Questions
What is net worth?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It's the clearest single number for tracking your overall financial health.
Should I include my house in net worth?
Yes, include its current market value as an asset, and any remaining home loan as a liability. Many planners also track net worth separately with and without the primary residence, since it's not easily liquidated.
Is a negative net worth bad?
It's common early in life or career (student loans, starting a home loan) and isn't necessarily alarming if it's trending positive over time. Consistently negative or worsening net worth is the real warning sign.
Should I count my retirement accounts (EPF, NPS)?
Yes, they're real assets even though they're not immediately liquid. Some people track "liquid net worth" (excluding retirement accounts) separately for near-term planning purposes.
How often should I calculate my net worth?
Quarterly or annually is common for most people — frequent enough to see meaningful trends, infrequent enough to avoid obsessing over short-term market fluctuations in investments.
What's a "good" net worth for my age?
This varies enormously by income, location and life circumstances — there's no universal benchmark. Focus on your own trend improving over time rather than comparing to generic rules of thumb.
Should I value my car as an asset?
Yes, at realistic current resale value (which depreciates over time), not the original purchase price. Cars are typically among the fastest-depreciating assets in a net worth calculation.
Does net worth include my salary or future earnings?
No. Net worth is a snapshot of current assets minus current liabilities — it doesn't include future income potential, which is a separate concept sometimes called "human capital."
How do I increase my net worth?
Two levers: grow assets (save, invest, let investments compound) and reduce liabilities (pay down high-interest debt faster). Consistently doing both moves net worth up over time.
Should jointly-owned assets be split 50/50?
For household net worth, include the full value once. For individual net worth in a joint household, splitting based on actual ownership or contribution is a reasonable convention, though there's no strict rule.
This calculator is for personal tracking purposes only. Use realistic current market values for accurate results.