Frequently asked questions
What is a good net worth?
According to the Federal Reserve's Survey of Consumer Finances, the median US household net worth is about $192,700 (2022), while the average is $1.06 million (skewed by ultra-wealthy households). A more useful benchmark is age-based: your net worth should roughly equal your annual salary by age 30, 3× by 40, 6× by 50, and 8× by 60.
Should I include my home in net worth?
Yes, but with nuance. Your home is an illiquid asset — you can't spend it without selling or borrowing against it. Financial planners often calculate two figures: gross net worth (including home) and investable net worth (excluding home and other illiquid assets). Both are useful. This calculator includes home value as an asset with mortgage as a liability, which is the standard approach.
Should I include retirement accounts?
Yes — 401k, IRA, and pension accounts are legitimate assets even if they have withdrawal restrictions. Use the current balance, not the projected future value. Note that traditional 401k/IRA balances will be reduced by taxes upon withdrawal, so some planners discount them by their expected tax rate for a more conservative view.
How often should I calculate my net worth?
Quarterly is ideal for most people — frequent enough to track progress, not so frequent that short-term market swings cause anxiety. The most important thing is the direction of the trend over years, not the exact number on any given day. Consider recording your net worth on the same date each quarter to build a meaningful personal dataset.