Is home equity part of net worth?
Yes, when the home’s realistic value and the mortgage balance are both included. It should still be separated from liquid investments when planning near-term spending.
LEVEL 100 · PRE-FLIGHT
Net Worth Calculator
Measure what you own against what you owe—the clearest financial position report.
Illustrative educational estimate. Returns and outcomes are not guaranteed.
RESULT—
HOW TO USE THE RESULT
How to calculate net worth correctly
Net worth equals total assets minus total liabilities. Use realistic current values, not purchase prices or hoped-for sale prices. Include retirement accounts and property, but keep liquidity visible: a dollar of home equity cannot pay an immediate bill as easily as a dollar of cash.
Should pensions and Social Security be included?
Usually track them as future income rather than inventing an account balance. A formal pension present value requires plan-specific assumptions.
How often should net worth be updated?
Quarterly or semiannually is enough for most households. The direction, savings behavior, and debt reduction matter more than daily market movement.
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