Calculating your net worth can be done using this formula: Net worth = Assets – Liabilities. However, since you cannot get the exact amount of some of your assets, such as real estate property, you can simply check the market value of your assets by comparing it to similar assets that are recently sold in the market.

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How to Calculate Your Net Worth
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For an individual, examples of assets include, but are not limited to, the following:

• Real estate
• Vehicles
• Savings accounts
• Retirement accounts
• Checking accounts.

Your liabilities also include the loans you currently have. However, future interest charges are not considered a liability yet, and should only be included once that interest comes due. Once you have subtracted your liabilities from your assets, you can see how much you are worth.

For an individual, liabilities include, but are not limited to, the following:

• Mortgage loans
• Credit card debt
• Student loans
• Personal loans
• Vehicle loans

If you have a mortgage on a house that is worth \$300,000 and your loan balance is \$200,000, then you can add \$100,000 to your personal net worth.

When calculating your net worth, you do not include your income. This is because even if you have a high income, if you spend all of your money, it is not part of your net worth. On the other hand, if someone has a low income but he or she invests in assets and saves money, he or she may actually have a high net worth.