How it works
List everything you own at a realistic current value — not what you paid for it — and everything you owe, including the full mortgage balance, not just the monthly payment. Subtract total liabilities from total assets and you have your net worth. It can be negative, and that is not unusual early in a mortgage or after student loans. The ratio shows the same picture another way: above 1.0 means you own more than you owe, below 1.0 means the opposite.
Frequently asked questions
Can net worth be negative?
Yes. If you owe more than you own, the result is negative. Paying down debt and saving steadily move it up over time.
What value should I use for my home?
A realistic current market value, not the purchase price. A rough estimate is fine — this is a snapshot, not a valuation.