Net Worth Growth Rate
Calculate how fast your net worth is growing year-over-year to track financial progress.
=(current_net_worth - previous_net_worth) / previous_net_worth How It Works
Net worth growth rate shows the percentage change in your total wealth over a period. This single metric captures the combined effect of savings, investment returns, and debt reduction.
Syntax
=(ending_value - starting_value) / starting_valueFormat as percentage.
Example
Your Net Worth:
- January 2024: $85,000
- January 2025: $112,000
Formula: =($112,000 - $85,000) / $85,000
Result: 31.8% growth
Tracking Over Time
Build a net worth history:
| Date | Assets | Liabilities | Net Worth | Growth |
|---|---|---|---|---|
| Jan ‘23 | $120,000 | $50,000 | $70,000 | - |
| Jan ‘24 | $145,000 | $45,000 | $100,000 | 42.9% |
| Jan ‘25 | $180,000 | $38,000 | $142,000 | 42.0% |
Formula for growth: =(D3-D2)/D2
Breaking Down the Growth
Where did growth come from?
Savings Contribution
=net_savings / starting_net_worthInvestment Returns
=investment_gains / starting_net_worthDebt Reduction
=debt_paid_down / starting_net_worthExample Analysis:
| Source | Amount | % of Growth |
|---|---|---|
| Savings Added | $15,000 | 55.6% |
| Investment Gains | $8,000 | 29.6% |
| Debt Reduction | $4,000 | 14.8% |
| Total Growth | $27,000 | 100% |
CAGR: Multi-Year Growth
For growth over several years, use Compound Annual Growth Rate:
=(ending/starting)^(1/years) - 1Example: $50,000 → $142,000 over 5 years:
=(142000/50000)^(1/5) - 1 = 23.2% per yearNet Worth Milestones
Track progress toward goals:
| Milestone | Target | Current | Progress |
|---|---|---|---|
| Emergency fund | $15,000 | $15,000 | 100% |
| Net worth positive | $0 | $142,000 | ✓ |
| First $100K | $100,000 | $142,000 | ✓ |
| 1x annual income | $85,000 | $142,000 | 167% |
| Coast FI | $250,000 | $142,000 | 56.8% |
Progress formula: =MIN(current/target, 1) or =current/target
Doubling Time
How long until net worth doubles at current growth rate?
Rule of 72 (Approximate)
=72 / (growth_rate * 100)Precise Formula
=LOG(2) / LOG(1 + growth_rate)Example: At 15% growth:
- Rule of 72: 72/15 = 4.8 years
- Precise: 4.96 years
Monthly Tracking
Track monthly changes for more granular insight:
| Month | Net Worth | Monthly Δ | YTD Growth |
|---|---|---|---|
| Jan | $100,000 | - | 0.0% |
| Feb | $102,500 | $2,500 | 2.5% |
| Mar | $99,800 | -$2,700 | -0.2% |
| Apr | $105,200 | $5,400 | 5.2% |
Formulas:
- Monthly Δ:
=B3-B2 - YTD Growth:
=(B3-$B$2)/$B$2
Projecting Future Net Worth
Based on current growth rate:
=current_net_worth * (1 + growth_rate)^years| Years | At 10% Growth | At 15% Growth | At 20% Growth |
|---|---|---|---|
| 5 | $229,000 | $286,000 | $353,000 |
| 10 | $368,000 | $574,000 | $879,000 |
| 20 | $956,000 | $2,312,000 | $5,486,000 |
Starting from $142,000
Growth vs. Age Benchmarks
Compare your growth to typical benchmarks:
| Age Range | Typical NW Growth |
|---|---|
| 20s | High % (small base) |
| 30s | 15-25% |
| 40s | 10-15% |
| 50s | 8-12% |
| 60s | 5-8% |
Percentage growth naturally slows as your base grows - $50K on $500K is 10%, but the same on $100K was 50%.
Pro Tips
-
Track quarterly minimum - monthly can be noisy due to market swings
-
Separate sources - knowing whether growth comes from savings vs. returns helps planning
-
Ignore short-term drops - market corrections don’t change long-term trajectory
-
Focus on what you control - savings rate matters more than investment returns in early years
-
Celebrate milestones - hitting targets (first $100K, etc.) builds motivation
Common Errors
- Starting from negative: Growth rate is misleading when starting from negative net worth - use absolute change instead
- Attributing all growth to returns: Most early growth is savings, not investment gains
- Panic during drops: Temporary declines are normal - zoom out to see the trend