How to Calculate Your Net Worth in 2025 — Step by Step
Net worth is the single most important number in your financial life — more important than your salary, credit score, or savings account balance. Here's exactly how to calculate it and what the number means.
Once you know your net worth, use our retirement calculator to see if you are on track to retire comfortably.
Open Retirement Calculator →The Net Worth Formula
Net Worth = Total Assets − Total Liabilities
That's it. Every dollar you own minus every dollar you owe. The result can be positive (more assets than debts) or negative (more debts than assets — common and normal for younger Americans with student loans).
Step 1 — List All Your Assets
Assets are everything you own that has monetary value:
| Asset Type | What to Include | Where to Find Value |
|---|---|---|
| Cash & Bank Accounts | Checking, savings, money market | Bank statements |
| Investments | Stocks, bonds, ETFs, mutual funds | Brokerage account |
| Retirement Accounts | 401(k), IRA, Roth IRA, pension value | Account statements |
| Real Estate | Home, rental properties (current market value) | Zillow, recent comps |
| Vehicles | Cars, boats, motorcycles | Kelley Blue Book |
| Business Interests | Ownership stake in any business | Estimated valuation |
| Other Valuables | Jewelry, art, collectibles worth $1,000+ | Appraisal or market value |
Step 2 — List All Your Liabilities
Liabilities are every debt and financial obligation you owe:
| Liability Type | What to Include | Where to Find Balance |
|---|---|---|
| Mortgage | Remaining balance on home loan(s) | Mortgage statement |
| Car Loans | Remaining balance on auto loans | Loan statement |
| Student Loans | Federal and private student loan balances | studentaid.gov or servicer |
| Credit Card Debt | Current balances on all cards | Card statements |
| Personal Loans | Any other money owed to banks or individuals | Loan documents |
| Medical Debt | Outstanding medical bills | Bills / collections |
Average Net Worth by Age in America (2025)
From the Federal Reserve's Survey of Consumer Finances:
| Age Range | Average Net Worth | Median Net Worth |
|---|---|---|
| Under 35 | $76,000 | $13,900 |
| 35–44 | $436,000 | $91,300 |
| 45–54 | $833,000 | $168,600 |
| 55–64 | $1,175,000 | $213,100 |
| 65–74 | $1,218,000 | $266,400 |
| 75+ | $958,000 | $254,800 |
Important: Use median, not average, for realistic comparisons. Average is pulled up by the very wealthy. Median means half of Americans have more and half have less — a much more realistic benchmark.
Net Worth Benchmarks by Age
- Age 25: Breaking even (zero net worth) is fine. Focus on building income and avoiding high-interest debt.
- Age 30: Target net worth = 1× your annual salary. Many have negative net worth due to student loans — normal.
- Age 35: Target = 2× annual salary
- Age 40: Target = 3× annual salary
- Age 50: Target = 6× annual salary
- Age 60: Target = 8× annual salary
- Retirement (67): Target = 10× annual salary
How to Grow Your Net Worth Faster
The 3 Levers of Net Worth Growth
- 1Increase assets: Max your 401(k) to get employer match first (instant 50–100% return). Then max Roth IRA ($7,000 in 2025). Then invest in low-cost index funds.
- 2Decrease liabilities: Pay off high-interest debt aggressively (credit cards at 20%+ first). Student loans and mortgage at 6–7% are lower priority than investing if your rate is below expected market returns.
- 3Increase income: The fastest net worth lever. A $10,000 raise invested over 20 years at 7% = $38,000 more in net worth. Skills, negotiation, and side income all compound.
Net Worth vs. Income — What Matters More?
Income is what you earn. Net worth is what you keep. A doctor earning $300,000/year who spends $290,000 has a lower net worth than a teacher earning $65,000 who saves 20% for 20 years.
The formula: Net Worth = Income × Savings Rate × Time × Investment Returns
Of these, savings rate and time are the most controllable for most Americans. Starting at 25 vs 35 with the same contributions results in roughly double the retirement wealth due to compound interest.
See how your current savings will grow by retirement age — with adjustable return rates and monthly contribution goals.
Try Retirement Calculator →