Understanding your net worth result
The following benchmarks are drawn from the Federal Reserve's 2022 Survey of Consumer Finances (SCF), which reports median and mean family net worth by age group in the United States. These are population-level reference points, not personal targets.
| Age group (US median, 2022 SCF) | Median net worth | Mean net worth |
|---|---|---|
| Under 35 | $39,000 | $183,000 |
| 35–44 | $135,000 | $549,000 |
| 45–54 | $247,000 | $975,000 |
| 55–64 | $364,000 | $1,566,000 |
| 65–74 | $409,000 | $1,794,000 |
| 75+ | $335,000 | $1,624,000 |
- Asset values should reflect current fair market value, not original purchase price or book value. Real estate and vehicles depreciate or appreciate over time.
- Retirement account values (401(k), IRA, pension) are pre-tax in most cases. Withdrawals will be subject to income tax, so the after-tax value may be 20–30% lower depending on the marginal rate at the time of withdrawal.
- This calculator does not include the value of future Social Security benefits, defined-benefit pension entitlements, or the capitalized value of human capital (future earning potential), all of which are real components of lifetime economic wealth.
- Net worth can be negative, particularly for young adults with significant student loan debt or recent home purchases with small down payments. Negative net worth is not necessarily a sign of financial distress if earning capacity is high and debts are being repaid on schedule.
What is net worth?
Net worth is the difference between the total market value of everything a person or household owns (assets) and the total amount owed to creditors (liabilities). It is the personal equivalent of a corporate balance sheet and represents a snapshot of financial health at a specific date. A positive net worth means assets exceed debts; a negative net worth means debts exceed assets.
Assets typically fall into liquid assets (cash and equivalents immediately accessible), investment assets (stocks, bonds, mutual funds, retirement accounts such as 401(k) and IRA), and physical assets (real estate at current market value, vehicles at current resale value). Liabilities include secured debts (mortgage, auto loans) and unsecured debts (credit card balances, personal loans, student loans).
The Federal Reserve's Survey of Consumer Finances, published every three years, provides benchmarks for median and mean household net worth by age group in the United States. Median net worth rises substantially with age, reflecting decades of asset accumulation and debt repayment.
How to use this net worth calculator
- Enter the current market value of each asset category. For real estate, use the current estimated market value, not the purchase price. For investments and retirement accounts, use current account balances.
- Enter the current outstanding balance of each liability. For the mortgage, enter the remaining principal balance (not the original loan amount). For credit cards, enter the current balance owed.
- Read the total assets, total liabilities, and net worth (assets minus liabilities).
- To track progress over time, record the result periodically (monthly or quarterly) and note which assets grew or which debts were reduced.
The net worth formula
Net worth is calculated by summing all assets and subtracting all liabilities. This is the same fundamental accounting equation used on corporate balance sheets (Assets = Liabilities + Equity), rearranged to solve for equity (net worth).
Часто задаваемые вопросы
What is a good net worth by age?
According to the Federal Reserve's 2022 Survey of Consumer Finances, the median net worth in the United States is approximately $39,000 for adults under 35, rising to $135,000 for ages 35–44, $247,000 for ages 45–54, and $364,000 for ages 55–64. Mean figures are substantially higher because they are influenced by very high-net-worth households. These are population benchmarks, not personal targets, and vary significantly by income, region, and household composition.
Should I include my home at market value or purchase price?
Net worth calculations use current fair market value, not purchase price. The current estimated selling price of the property (which can be estimated using recent comparable sales or online valuation tools) is the relevant asset value. The outstanding mortgage balance is recorded separately as a liability, so the net equity in the home (market value minus mortgage balance) is what contributes positively to net worth.
Do retirement accounts count as assets?
Yes. The current account balance of retirement accounts such as 401(k)s, IRAs, and similar plans counts as an asset in a net worth calculation. However, traditional pre-tax retirement accounts will be subject to ordinary income tax when funds are withdrawn, so the after-tax value may be lower. Some financial planners adjust retirement account balances to after-tax equivalents for a more accurate picture.
What is the difference between net worth and income?
Income is a flow — the amount earned over a period of time. Net worth is a stock — the cumulative value of assets minus debts at a specific moment. High income does not automatically produce high net worth if spending equals or exceeds earnings. Conversely, a person with modest income who saves and invests consistently over decades can accumulate substantial net worth.
How often should I calculate my net worth?
Many personal finance practitioners recommend calculating net worth quarterly or annually. More frequent calculations (monthly) can be useful during periods of active debt repayment or investment growth, as the trend over time — rather than any single figure — is the most informative signal.
Источники
- Federal Reserve Board. Changes in U.S. Family Finances from 2019 to 2022: Evidence from the Survey of Consumer Finances. Federal Reserve Bulletin, 2023.
- Consumer Financial Protection Bureau (CFPB). Building a net worth statement. consumerfinance.gov.
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance (13th ed.). McGraw-Hill, 2020. Chapter 1: Goals and Governance of the Corporation (balance sheet concepts).
- Internal Revenue Service (IRS). Retirement topics — account balance and rollovers. irs.gov.