Net Worth Calculator
Your "net worth" is the amount of cash you would have left if you sold all your assets (car, house, furniture etc.) and paid off all your debts. In other words, net worth = assets - liabilities.
Enter the value of your assets and liabilities. If not sure, estimate the amount rather than leave 0. You can use the [Tab] key to move from input to input. You may click "Calc" as frequently as you like.
The percentage shown in each header is the percent of the total liabilities or total assets as appropriate. If "retirement assets" shows 15.7%, then "retirement assets" make up 15.7% of your total assets.
The "Personal Net Worth Summary" section is where you'll find your net worth. The liability percentage is the percentage of your liabilities to your assets. A result of say 75% simply means that your liabilities are 75% of your assets. The net worth percentage is the percentage of assets remaining after the liabilities are paid.
Hopefully the net worth is not negative. That of course would mean that you owe more than the total value of your assets.
Why may you want to create a net worth statement
Creating a net worth statement can be a helpful exercise for various reasons. First and foremost, it provides a clear picture of an individual's financial situation, allowing them to understand better their current financial standing and plan for the future. By analyzing their assets and liabilities, individuals can identify areas where they may need to cut back on spending or increase their income to improve their net worth. Additionally, a net worth statement can be a valuable tool when applying for loans or other types of financing, as it demonstrates an individual's financial stability and ability to repay debts.
Liabilities are debts or financial obligations that an individual owes to someone else, such as a mortgage, car loan, or credit card debt. Assets, on the other hand, are anything that an individual owns that has monetary value and can be converted into cash, such as a savings account, investment portfolio, or real estate.
When an individual has a positive net worth, their assets exceed their liabilities. This indicates that they have accumulated wealth and a solid financial foundation. Conversely, when an individual has a negative net worth, it means that their liabilities exceed their assets. This indicates that they owe more money than they own, which can signify financial trouble and may require corrective action to improve their financial standing.
In conclusion, calculating your net worth can provide valuable insights into your overall financial health and help you make informed financial decisions. By understanding the difference between liabilities and assets and what a positive or negative net worth means, you can improve your financial situation and achieve your long-term financial goals.
You should consider saving your inputs so that you can easily come back to this calculator from time-to-time to update them. That way you can see your financial progress.
3 Comments on “Net Worth Calculator”
David Smith says:
Will you make a wordpress version of this plugin?
I have no such plans at this time.
Comments, suggestions & questions welcomed...