Net Worth
InvestingThe total value of all assets minus all liabilities — a snapshot of your overall financial position.
Example
Example: Assets: $45,000 in 401(k) + $12,000 savings + $180,000 home equity + $8,000 car value = $245,000. Liabilities: $220,000 mortgage + $25,000 student loans + $3,000 credit cards = $248,000. Net worth: $245,000 - $248,000 = -$3,000. Negative net worth is common for young homeowners — the trajectory matters more than the snapshot. Use our net worth calculator.