You know that net worth equals assets minus liabilities. But how do you actually sit down and figure out your number?
Here’s a method that takes about ten minutes. Grab a pen, open your banking apps, and let’s go.
Step 1: List your assets
Go through every account and asset you have. Use current balances, not what you originally paid.
Cash and bank accounts:
- Checking account balance
- Savings account balance
- Any cash on hand
Investments:
- Stock portfolio at current market value
- Mutual funds and ETFs
- Pension or retirement account balance
- Crypto at current value
Property:
- Real estate at current estimated market value, not purchase price
- Vehicle: check a used car site for your model and year
Other:
- Valuable items you could realistically sell
If you’re unsure about a value, estimate conservatively. A number that’s roughly right is infinitely better than no number at all.
Step 2: List your liabilities
Now list everything you owe.
- Mortgage balance: the remaining principal, not the original loan
- Student loans
- Car loan
- Credit card balances
- Personal loans from friends or family
- Any other debt
Use the current outstanding balance, not the monthly payment. If your mortgage has €180,000 remaining, that’s your liability, regardless of what you pay each month.
Step 3: Do the math
Add up all assets. Add up all liabilities. Subtract.
| Item | Amount |
|---|---|
| Total Assets | €_____ |
| Total Liabilities | €_____ |
| Net Worth | €_____ |
That’s your number.
If your assets and liabilities sit in more than one currency, the free multi-currency net-worth calculator handles the FX work and gives you a single clean total. It uses live mid-market rates and shows you how each currency contributes to the bottom line, so a strong dollar or weak rupiah does not quietly distort what you actually own.
Common surprises
When people do this exercise for the first time, a few things tend to catch them off guard.
“My car is worth less than I thought.” Cars depreciate fast. That €25,000 car you bought three years ago might be worth €14,000 now. Use current market value.
“My net worth is negative.” If you have a large student loan or mortgage, this is quite common, especially in your twenties and thirties. A negative net worth isn’t failure; it’s a starting point.
“I have more than I realized.” Small accounts add up. That old savings account with €800, the pension your employer contributes to. People often forget these.
The key is consistency
The first calculation is the hardest. After that, it gets easier. Update your number once a month and watch the trend. That trend, whether growing, stable, or shrinking, tells you more than the absolute value ever could.