How to Calculate Your Net Worth in 5 Minutes

The Simplest Financial Checkup You'll Ever Do

Most people have no idea what their net worth is — and that's a problem. Not because the number defines you, but because you can't improve what you don't measure.

The good news? Calculating your net worth takes about five minutes. You don't need an accountant, a financial advisor, or a degree in finance. Just a simple formula and a few minutes of honesty with yourself.

The Net Worth Formula

Here it is — the only equation you need:

Net Worth = What You Own (Assets) − What You Owe (Liabilities)

That's genuinely it. Add up everything you own that has financial value, subtract everything you owe, and the result is your net worth. Positive, negative, or zero — it's your financial starting point.

Step 1: List Your Assets

Assets are anything you own that holds meaningful financial value. Grab a notepad or open a spreadsheet, and list these out:

Cash and savings

Checking accounts
Savings accounts
Money market accounts
Cash on hand (yes, that emergency stash counts)

Investments

401(k) and 403(b) balances
Traditional and Roth IRAs
Brokerage accounts (stocks, bonds, ETFs, mutual funds)
HSA balances (if invested)
Cryptocurrency holdings

Property

Home (current market value, not what you paid)
Rental properties
Land

Other assets

Vehicles (current resale value — look up your vehicle's private-party value online)
Business ownership or equity
Valuable personal property (jewelry, art, collectibles — only if significant)

Pro tip: Be conservative with estimates. It's better to slightly undervalue your assets than to inflate your net worth with optimistic numbers.

Add it all up. That's your total assets.

Step 2: List Your Liabilities

Now the less fun part. List everything you owe:

Housing debt

Mortgage balance (remaining principal)
Home equity loan or HELOC balance

Education debt

Federal student loans
Private student loans

Consumer debt

Credit card balances (all of them)
Auto loans
Personal loans
Medical debt
Buy-now-pay-later balances (yes, these count)

Other liabilities

Money owed to family or friends
Tax debt
Any other outstanding obligations

Add it all up. That's your total liabilities.

Step 3: Do the Math

Subtract your total liabilities from your total assets.

Example:

Total assets: $185,000 (home equity + retirement accounts + savings + car value)
Total liabilities: $142,000 (mortgage + student loans + car loan + credit cards)
Net worth: $43,000

That's it. You now know your net worth. The entire process should take about five minutes once you have your account balances handy.

What If Your Net Worth Is Negative?

Don't panic. A negative net worth is more common than you think, especially for people in their 20s and 30s carrying student loans or a new mortgage. It doesn't mean you're failing — it means you have a clear starting point.

The average medical school graduate, for example, starts their career with a net worth of negative $200,000 or more. What matters isn't today's snapshot — it's the trajectory. A negative net worth that's moving toward zero every month is progress worth celebrating.

Common Calculation Mistakes

Even with a simple formula, people regularly get tripped up. Avoid these:

Counting your home at purchase price

Real estate fluctuates. Your home is worth what someone would pay for it today, not what you paid five years ago. Use online valuation tools like Redfin for a quick check, or use a net worth tracker like Nova that automatically updates your home's estimated value using ATTOM property data.

Forgetting retirement accounts

Your 401(k) and IRA are absolutely part of your net worth, even if you can't touch them without penalty until 59½. These are often your largest assets — don't leave them out.

Using the original price of your car

A car you bought for $35,000 three years ago might be worth $22,000 today. Use current market value, not sticker price.

Ignoring "small" debts

That $1,500 credit card balance and $800 in buy-now-pay-later payments add up. Every dollar of debt reduces your net worth. Include everything.

Including personal items that aren't truly valuable

Your furniture, clothing, and electronics have minimal resale value. Unless something is genuinely worth thousands on the secondary market, leave it off the list.

Double-counting home equity

If you list your home's full market value as an asset, make sure you also list the full mortgage balance as a liability. The difference (your equity) is what actually contributes to your net worth.

How Often Should You Calculate?

Once isn't enough. Your net worth is a living number that changes with every paycheck, every investment gain, every debt payment.

Monthly is the sweet spot for most people. It's frequent enough to spot trends and stay motivated, but not so frequent that daily market swings stress you out.

Some people prefer bi-weekly — synced to payday — which works great too. The key is consistency. Pick a cadence and stick with it.

Making It Effortless

Let's be honest: manually updating a spreadsheet every month gets old fast. Most people who start tracking manually abandon it within three months.

That's exactly why we built Nova. Connect your accounts once, and Nova automatically calculates your net worth, tracks changes over time, and shows you exactly what's driving your financial progress. No spreadsheets, no manual data entry, no forgetting to update for three months.

Whether you use Nova, a spreadsheet, or the back of a napkin — the important thing is that you start. Check out Nova's features to see how it works. Five minutes today gives you a baseline. Five minutes a month keeps you on track.

Your Next Step

Open your bank app right now. Jot down your checking and savings balances. Check your retirement account. Look up your loan balances. Run the formula — or use our free net worth calculator to do the math instantly.

That number — whatever it is — is your starting line. Everything from here is forward progress.