Finance
What is Net worth?
Net worth is what you own minus what you owe — your total assets (cash, investments, property) less your total debts. It's a single snapshot of your financial health, and growing it over time is a core goal of personal finance.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains net worth.
Key things to understand
- 1Net worth = total assets − total liabilities.
- 2Assets: cash, investments, property, valuables.
- 3Liabilities: loans, mortgages, credit card debt.
- 4It's a key snapshot of financial health.
Frequently asked questions
- What is net worth?
- The total value of what you own minus what you owe — your assets less your debts.
- How do you calculate net worth?
- Add up all your assets, then subtract all your debts and liabilities.
- Can net worth be negative?
- Yes — if your debts exceed your assets, your net worth is negative, common early in life with loans.