A net worth statement is total assets minus total liabilities. Assets to include: cash and bank accounts, investments, retirement accounts, real estate, vehicles, and business or other holdings. Liabilities: mortgages, auto and student loans, credit cards, and other debts. Value everything at today's market price, and leave out future income, Social Security, and leased vehicles.
A net worth statement shows everything you own minus everything you owe. Getting it accurate requires knowing what to include - and what to leave out.
Ready to track? The Net Worth Tracker ships with eleven pre-built asset types and seven debt types. Update the monthly columns and the Summary tab charts the trend.
The Formula
The calculation is straightforward: Net Worth equals Assets minus Liabilities. Assets are what you own with monetary value. Liabilities are what you owe. The difference is your net worth - positive or negative.
Tracking both sides gives you the full picture. Many people focus only on what they have in the bank, ignoring retirement accounts (underestimating) or debt balances (also underestimating, in a different direction). A complete statement captures everything.
Assets to Include
Cash and equivalents form the foundation: checking accounts, savings accounts, money market accounts, CDs (use current value, not maturity value), and cash on hand if it’s significant. These are your most liquid assets - available immediately if needed.
Investments include brokerage accounts, individual stocks and bonds, mutual funds and ETFs, cryptocurrency at current market value, and savings bonds. Use current values, not what you paid. Markets move, and your net worth statement reflects today’s reality.
Retirement accounts often represent the largest asset category for many people: 401(k), 403(b), 457 plans, Traditional and Roth IRAs, SEP and SIMPLE IRAs, HSA balances, pension present value if known, and 529 plans if you control them. List these at their full current balance. The money is yours even though a withdrawal from a Traditional IRA or 401(k) before age 59 and a half generally triggers a 10% additional tax on top of ordinary income tax.
Property includes your primary residence at current market value, rental properties, vacation homes, and land. Real estate values fluctuate, so use reasonable estimates from Zillow, Redfin, or recent appraisals.
Vehicles like cars, motorcycles, and boats use current value from Kelley Blue Book or similar sources. RVs and other vehicles count too. Be realistic - vehicles depreciate faster than most people expect.
Other assets can include business ownership (your share at estimated value), vested stock options at current value, valuable jewelry or art at appraised value, whole life insurance cash surrender value, and money owed to you that you reasonably expect to collect.
The Premium Net Worth Tracker carries these as eleven pre-built asset types and tracks each balance month over month.
Liabilities to Include
Housing debt includes your primary mortgage balance, home equity loans or HELOCs, and investment property mortgages. Use current balances, not original loan amounts.
Vehicle loans cover auto loans at current balance, plus motorcycle, boat, or RV loans. Again, current balance - not what you originally borrowed.
Student loans include federal student loans, private student loans, and Parent PLUS loans. These often represent significant liabilities for younger adults.
Credit encompasses credit card balances (all of them, not just the big ones), store credit cards, and buy now pay later balances. Those small balances add up.
Other debt includes personal loans, 401(k) loans, medical debt, tax debt, and margin loans. Anything you owe belongs on this list.
What NOT to Include
Some things don’t belong on a net worth statement, even if they have value in some sense. Future income like expected salary or inheritance isn’t a current asset - it doesn’t exist yet. Social Security benefits, while valuable, represent future payments, not current assets.
Regular household items like normal furniture and clothing aren’t worth tracking. Yes, your couch has some value, but the effort to estimate and update it isn’t worthwhile. Leased vehicles don’t count either - you don’t own them. The whole point of a net worth statement is capturing ownership, and leases are obligations, not assets.
How to Value Assets
Use current market value, not what you paid. What matters is what you could get for it today. Your car might have cost $35,000, but if it’s worth $22,000 now, that’s the number.
Bank accounts are easy - just use the current balance. Investments use current market value from your statements or login. Real estate is trickier - Zillow and Redfin estimates work, or a recent appraisal if you have one. Be conservative here. Vehicles use Kelley Blue Book private party value, which is typically lower than dealer value but more realistic.
When uncertain, go conservative. Better to underestimate and be pleasantly surprised than to overestimate and make decisions based on inflated numbers. Optimistic valuations are one of the most common net worth tracking mistakes, and they are easy to slip into without noticing.
Example
Here’s what a completed net worth statement looks like:
| Assets | Value |
|---|---|
| Checking | $5,200 |
| Savings | $12,000 |
| Brokerage | $35,000 |
| 401(k) | $89,000 |
| Roth IRA | $24,000 |
| Home | $385,000 |
| Vehicle | $22,000 |
| Total Assets | $572,200 |
| Liabilities | Balance |
|---|---|
| Mortgage | $295,000 |
| Auto Loan | $15,000 |
| Student Loans | $28,000 |
| Credit Cards | $3,200 |
| Total Liabilities | $341,200 |
Net Worth: $231,000
This person has significant assets in retirement accounts and home equity, offset by typical debts. The $231,000 net worth is the number to track over time. For context, the Federal Reserve’s 2022 Survey of Consumer Finances put median US family net worth at about $192,900, so this example sits a little above the national midpoint.
To total your own assets and liabilities without building a sheet, use the calculator below.
How Often to Update
Annually is the minimum for useful tracking. Quarterly updates show trends more clearly and catch problems earlier. After major events like buying or selling property, paying off a debt, or receiving an inheritance, updating right away keeps the statement current.
The goal is seeing the trend, not obsessing over every fluctuation. Markets move daily, but net worth tracking works best at monthly or quarterly intervals where meaningful changes become visible.
Once the categories above are on paper, the next step is a format you will actually revisit. The Google Sheets walkthrough builds the same asset and liability totals with formulas that recalculate as you edit, so each update is a quick change rather than a fresh start.
Related
- Net Worth Calculator - add up assets and liabilities in your browser
- How to Calculate Net Worth in Google Sheets
- How to Build a Personal Balance Sheet in Google Sheets
- Net Worth Tracker Spreadsheets
- Financial Planning Template
- Net Worth Tracker
Frequently asked questions
Should I include my home?
Yes. It's an asset. Include the mortgage as a liability. The difference is your home equity.
What about retirement accounts I can't access?
Include them at full value. The money exists even if early withdrawal before age 59 and a half generally carries a 10% additional tax on top of income tax.
What if my net worth is negative?
It still belongs on the statement. Watching a negative figure move toward zero over time is one of the clearer signals a statement can show.
Should I track my net worth individually or as a household?
Either works, as long as it stays consistent. A household statement counts both partners' assets and debts, plus jointly owned accounts and property. An individual statement counts your share. Mixing the two between updates makes the trend hard to read.
Do I subtract future taxes owed on my 401(k) or Traditional IRA?
The common approach is to list the full balance, since that is the account's current value. Some people also note an after-tax estimate separately. What matters is using the same method every time so the trend stays comparable.
Mortgage balance or original loan amount?
The current balance. A net worth statement is a snapshot of today, so what you still owe is the figure that reduces your total, not what you originally borrowed.
Sources
- Topic no. 557, Additional tax on early distributions from traditional and Roth IRAs - Internal Revenue Service
- Survey of Consumer Finances (SCF) - Federal Reserve Board
About this article
Retirement withdrawal figures checked against IRS Topic no. 557; the median net worth benchmark comes from the Federal Reserve's 2022 Survey of Consumer Finances. Net Worth Tracker claims checked on 2026-09-10 against the shipped Google Sheet (Summary, Assets, Liabilities, Milestones, Setup, Instructions and Data Types tabs). Last reviewed September 2026.