Skip to content
Know.itKnow.it
Create an animated lesson
On request

This article is free to read. Creating a lesson uses your daily or stored credits; review the language and settings before starting.

What is net worth?

FinanceLesson on requestFree to read

Quick answer

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.

Key things to understand

  1. Net worth = total assets − total liabilities.
  2. Assets: cash, investments, property, valuables.
  3. Liabilities: loans, mortgages, credit card debt.
  4. It's a key snapshot of financial health.

People also ask

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.

Part of the guide: Money Basics: Save, Borrow & Invest →