Net Worth Calculator

Your net worth is an important, simple way to measure your financial health. If you earn $45,000 a year, have worked for 15 years, but only have a net worth of $5,000, it’s clear that you haven’t been able to save enough to establish a solid foundation for yourself. Our Net Worth calculator makes it easy. If you don’t know what Net Worth means, start here first.

What’s A “Good” Net Worth Number?

One of our favorite books about money is The Millionaire Next Door. If you plan to become a millionaire, you need to read it ASAP. We also love the book’s simple benchmark for your net worth.

It has a simple formula for a net worth value you should shoot for, which is: Net Worth Target = Age X Pre-Tax Income / 10. Another great benchmark is: Years Worked X Avg. Salary X 0.25.

2 thoughts on “Net Worth Calculator”

  1. I have almost no savings, and my current account is rarely more than about $10 000. However, I do own our house. So that means that my net worth is probably around $600,000. But above all, my wife and I have government pensions that will keep paying around $8000 a month until we drop dead. How do you include that?

    • To include the pensions you would need to come up with an assumption for how long you’ll receive them and then discount the cashflows. To keep things simple, just come up with a rough number of years and multiply by the value and just use the nominal value. Good luck!


Leave a Comment