Simple Net Worth Calculator with Chart and Percentile

Net worth is a financial metric that represents the difference between a person’s assets and liabilities. In simple terms, it’s the value of what an individual owns (assets) minus what they owe (liabilities). It’s a measure of an individual’s or entity’s financial health and indicates their overall financial position at a specific point in time.

Here’s a breakdown of the components:

1. Assets: These are items of economic value that a person or company owns, which can include cash, investments, real estate, vehicles, personal belongings, and more.

2. Liabilities: These are debts or obligations that an individual or entity owes to others, such as mortgages, car loans, credit card debt, student loans, and other loans.

To calculate net worth, you subtract total liabilities from total assets:

Net Worth = Total Assets – Total Liabilities

A positive net worth indicates that the individual’s assets exceed their liabilities, which generally signifies financial stability and the ability to cover debts. Conversely, a negative net worth means that liabilities outweigh assets, which can indicate financial challenges and potential difficulty in meeting financial obligations.