What Is Net Worth?
Net worth = Total Assets − Total Liabilities. It's the single most comprehensive measure of your financial health. A positive net worth means you own more than you owe. Negative net worth (common in your 20s with student loans) means you owe more than you own — but it can be improved over time.
Example: $300,000 home + $50,000 savings + $80,000 retirement accounts + $20,000 car − $220,000 mortgage − $15,000 car loan − $8,000 credit cards = $207,000 net worth.
Frequently Asked Questions
Per Federal Reserve 2022 data — Average (median): Under 35: $183,500 ($39,000). Ages 35–44: $549,600 ($135,600). Ages 45–54: $975,800 ($247,200). Ages 55–64: $1,566,900 ($374,500). Ages 65–74: $1,794,600 ($409,900). Median is more representative since averages are skewed by the ultra-wealthy.
A common benchmark: net worth equal to your annual salary by age 30. If you earn $60,000/year, $60,000 net worth at 30 is on track. The median for under-35s is $39,000. Positive net worth at 30 — even $20,000 — puts you ahead of many peers, especially those carrying student loan debt.
Yes. Your home's current market value is an asset; your mortgage balance is a liability. The difference (home equity) is part of net worth. Use an estimated current market value, not the original purchase price. Our calculator separates home value and mortgage balance for accuracy.
The most impactful steps: (1) Maximize retirement contributions — 401(k) and Roth IRA, (2) Pay off high-interest debt aggressively, (3) Build emergency fund to avoid new debt, (4) Invest consistently in low-cost index funds, (5) Avoid financing depreciating assets like new cars when possible.