How To Calculate Your True Net Worth In 5 Minutes

Net worth is a snapshot of your financial position. A simple way to think about it is assets minus debts.

Moneysmart's net worth calculator says it can help work out whether total assets outweigh debts and the strength of a current financial situation. Moneysmart also notes that calculator results are estimates, not predictions.

Step 1: List your assets

Start with what you own. This may include:

• bank account balances
• savings
• vehicles
• property
• superannuation
• investments
• other assets you can reasonably value

Use realistic values. Do not use optimistic estimates if the purpose is to understand your current position.

Step 2: List your debts

Then list what you owe. This may include:

• credit card balances
• personal loans
• car loans
• mortgages
• buy now pay later balances
• other debts

Step 3: Subtract debts from assets

The simple formula is:

Assets - debts = estimated net worth.

If the number is positive, your listed assets outweigh your listed debts. If it is negative, your listed debts outweigh your listed assets.

Step 4: Treat the result as a snapshot

Net worth changes as balances, asset values, debts, and life circumstances change. It should not be treated as a prediction.

How Cove Money helps

Cove Money can show a net worth snapshot based on connected account data and available information. The accuracy and completeness of that view depends on the accounts and data you have connected.

Cove Money is a personal finance information and tracking service. It does not provide personal financial advice or financial product advice.

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This article is general information only and does not constitute personal financial advice. Consider seeking advice from a licensed adviser before acting.