How to Calculate Your Net Worth
By Cedar & Ledger
Net worth is one number that shows where you stand: what you own minus what you owe. It's not a score, and it's normal for it to be low or negative early on, especially with student loans. What matters is the direction it moves over time.
Step 1: List what you own (assets)
- Cash in checking and savings
- Retirement and investment accounts (current balance)
- Home or car, at a realistic value you could sell it for, not what you paid
- Other things with real resale value, if you want to include them
Keep it simple. Most people leave out everyday belongings.
Want to track it every month? Here is how to make a net worth spreadsheet with totals and a trend chart.
Step 2: List what you owe (liabilities)
- Credit card balances
- Student loans
- Car loan
- Mortgage
- Personal loans, medical bills, money owed to family
Use the current balance from each statement.
Step 3: Subtract
| Example | |
|---|---|
| Assets | $18,500 |
| Liabilities | $24,000 |
| Net worth | −$5,500 |
A negative number just means debts are bigger than assets right now. That's a starting point, not a verdict.
Step 4: Check it on a schedule
Once a month or once a quarter is plenty. Use the same date each time and the same way of valuing things. Daily swings in investments are noise; the trend over months is what's useful.
Step 5: Use it to steer your budget
Net worth goes up two ways: assets grow (saving, investing) or debts shrink. Both come from the gap between what you earn and what you spend. That's where a budget comes in: it decides where each month's extra money goes.
Tools
A simple list works fine. If you'd like a ready-made sheet, the Net Worth Tracker ($5, Excel and Google Sheets) lists up to 30 accounts as assets or debts; you type each balance once a month and it shows net worth, the monthly change and a chart over the year. Nothing updates automatically. If you don't have a budget yet, the free Starter Budget Sheet (pay what you want, $0 is fine) is a simple place to start tracking income and spending.
This is general information, not financial advice. Cedar & Ledger makes plain spreadsheet templates for money and small business: cedarandledger.vercel.app.
Try the free net worth calculator →
Related template: Net Worth Tracker. Also see: free Starter Budget Sheet
See all Cedar & Ledger templates
Frequently asked questions
What does this guide cover?
List what you own and what you owe, subtract, check it on a schedule, and use the trend to steer your budget. A plain how-to with an example.
What are the steps?
1) List what you own (assets); 2) List what you owe (liabilities); 3) Subtract; 4) Check it on a schedule; 5) Use it to steer your budget.
Do I need a template to do this?
No. A notebook or a sheet you build yourself works fine. Cedar & Ledger also sells spreadsheet templates (I'd earn from a purchase); see the template box at the top of this page.
Is this financial advice?
No. It's general information with example numbers only, not financial, tax, legal or medical advice. Use your own numbers and check anything important with a qualified professional or the official source.