Net Worth Calculator - Calculate Your Net Worth Instantly

Net worth represents the total value of an individual's or a company's assets minus their liabilities. Simply put, it is the difference between what they own and what they owe.

A net worth calculator is a tool designed to determine this value based on key inputs, such as total assets and liabilities. An advanced net worth calculator can even categorise inputs, allowing users to specify different asset types—like shares, property, gold, cash, and bank balances—or liabilities, such as home loans, personal loans, credit card dues, and taxes owed.

Net worth can be determined for any company, group, or individual using a straightforward formula. Every entity possesses resources that either generate financial benefits or create liabilities.

Simply put, net worth is the difference between total assets and total liabilities. The formula for calculating it is explained below in detail.

• Assets: When calculating Net Worth, all income sources or assets that provide financial benefits get classified as assets. These include properties, rental income, shares, and other valuable resources.
• Liabilities: Unlike assets, liabilities are financial obligations that lead to an outflow of resources. These can range from essential expenses to discretionary spending. Common liabilities include loans, taxes, and fees.

Thus, one can determine an individual or company's net worth by separately summarising all assets and liabilities and then finding the difference.

Assets owned by a person are:

• Savings in Bank: Rs 3,00,000
• Provident Fund: Rs 5,00,000
• Own House: Rs 60,00,000
• Investments in Stocks & Mutual Funds: Rs 4,00,000

Liabilities of the person:

• Home Loan Outstanding: Rs 25,00,000
• Credit Card Dues: Rs 50,000
• Personal Loan: Rs 5,00,000

Net Worth Calculation

Using the formula:

Net Worth = (Total Assets) − (Total Liabilities)

= (3,00,000+5,00,000+60,00,000+4,00,000) − (25,00,000+50,000+5,00,000)

= 72,00,000 − 30,50,000

= Rs 41,50,000

Thus, as of today, the total Net Worth of the person is Rs 41,50,000.

A net worth calculator is a valuable tool for assessing financial health. Here are some key benefits it offers:

In summary, a Net Worth calculator is valuable for managing finances efficiently. However, accounting for all assets and liabilities is essential for an accurate calculation. Tracking your Net Worth can help you stay on course and achieve your financial goals.