How to calculate your net worth
To calculate your net worth, add up the current value of your assets and subtract your debts. The SEC describes this as a net worth statement.
1. Pick a date and decide whose finances to include
Use balances from the same date to calculate your net worth. If you're calculating household net worth, count jointly owned assets once and include the household's debts. For an individual record, use your share of jointly owned assets and record the debt you are responsible for.
2. Add up your assets
Collect the current balance of each account. For a car or property, use a dated estimate of its resale value. Count each account once: entering a 401(k)'s total value and then adding its individual holdings would duplicate them.
Here is an invented example in US dollars:
| Asset | Current value |
|---|---|
| Cash | $15,000 |
| Retirement accounts | $90,000 |
| Other investments | $35,000 |
| Car | $18,000 |
| Total assets | $158,000 |
Convert any foreign balances into dollars before adding them. At an assumed exchange rate of $1.10 per euro, a €10,000 account contributes $11,000. Keep the rate's date with your record.
3. Gather the balances of your debts
Check what you owe as of your chosen date. Our example has $18,000 in student loans and a $10,000 car loan, making total debts of $28,000. For each loan, enter the outstanding balance shown on the statement.
4. Subtract and save the result
$158,000 in assets minus $28,000 in debts gives a net worth of $130,000. This example excludes selling costs and taxes; the euro account above illustrates currency conversion separately.
Sumio calculates the total from your entries and converts values into your chosen currency. Save the date with your figures, then set a reminder to review them next month.
