What is net worth?


Net worth is assets minus liabilities. Or, you can think of as everything you own less all that you owe. Find your  by using our  calculator.

How do you calculate net worth?

Calculating your  requires you to take an inventory of what you own, as well as your outstanding debt. And when we say own, we include assets that you may still be paying for, such as a car or a house.

For example, if you have a mortgage on a house with a market value of $200,000 and the balance on your loan is $150,000, you can add $50,000 to your n

Basically, the formula is:


And by the way, your income is not included in a alculation. A person can bring home a big paycheck but have a low  if they spend most of their money. On the other hand, even people with modest incomes can accumulate significant wealth and a high if they buy appreciating assets and are prudent savers.

Do you include a 401(k) in a net worth calculation?

All of your retirement accounts are included as assets in your net worth calculation. That includes 401(k)s, IRAs and taxable savings accounts.

What are assets and liabilities?

If you’re not sure what assets and liabilities are, here are some guidelines:

Assets: Assets include cash — such as in your checking, savings and retirement accounts — and items such as cars, property and investments that you could sell for cash. These are often referred to as liquid assets.

Some fixed assets can count toward your calculation, too, provided you can or would sell them if needed. For example, your home would count toward your if you’re willing to use it for a home equity line of credit or sell it should the need arise.

“Some fixed assets can count toward your net worth calculation, too.”

How your net worth compares

The Federal Reserve releases its Survey of Consumer Finances every three years — the most recent report was issued in September 2020 with data from a survey fielded in 2019. Here’s how stacks up by income, age, family size and education, and how it has changed since 2016.

Net worth of U.S. families by income

Income tier 2016 2019 Change 2016-2019
Less than $20,000 $7,100 $9,800 37%
$20,000 to $39,900 $31,500 $44,000 40%
$40,000 to $59,900 $94,200 $92,900 -1%
$60,000 to $79,900 $181,500 $199,100 10%
$80,000 to $89,900 $421,700 $382,300 -9%
$90,000 to $100,000 $1,732,300 $1,589,300 -8%
All families $103,500 $121,700 18%

Net worth of U.S. families by age

Age tier 2016 2019 Change 2016-2019
Less than 35 $11,700 $13,900 19%
35–44 $63,600 $91,300 44%
45–54 $132,100 $168,600 28%
55–64 $199,200 $212,500 7%
65–74 $237,600 $266,400 12%
75 or more $281,600 $254,800 -10%
All families $103,500 $121,700 18%

Net worth of U.S. families by race or ethnicity

Race or ethnicity 2016 2019 Change 2016-2019
White non-Hispanic $181,900 $188,200 3%
Black or African American non-Hispanic $18,200 $24,100 33%
Hispanic or Latino $21,900 $36,200 65%
Other or multiple race $68,800 $74,500 8%
All families $103,500 $121,700 18%

Net worth of U.S. families by education

Education 2016 2019 Change 2016-2019
No high school diploma $24,300 $20,500 -16%
High school diploma $71,300 $74,000 4%
Some college $70,200 $88,800 26%
College degree $310,700 $308,200 -1%
All families $103,500 $121,700 18%

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