Add up everything you own (assets), everything you owe (liabilities), and see your net worth along with asset allocation.
Net worth
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Total assets
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Total liabilities
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Debt-to-asset ratio
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Asset allocation
Worked example
Take a household with $8,000 in cash, $20,000 in savings, $60,000 in taxable investments, $120,000 in retirement accounts, a $400,000 home, and $25,000 in vehicles. Add those up and total assets are $633,000. On the other side sit a $300,000 mortgage, $25,000 of student loans, $15,000 of auto loans, and $5,000 of credit-card debt, for total liabilities of $345,000. Net worth is simply assets minus liabilities, $633,000 minus $345,000, which is $288,000. The debt-to-asset ratio is total liabilities divided by total assets, $345,000 over $633,000, or about 54.5%, meaning a little over half of what the household owns is still financed. The home dominates the asset mix at 63.2%, with retirement accounts next at 19.0%, which is a common and concentrated pattern worth watching as you build liquid and retirement balances over time.
| Item | Amount |
|---|---|
| Total assets | $633,000 |
| Total liabilities | -$345,000 |
| Debt-to-asset ratio | 54.5% |
| Net worth | $288,000 |
How it is calculated
Net worth is the single clearest snapshot of financial health: everything you own minus everything you owe. The tool sums your asset categories, cash, savings, investments, retirement, primary residence, other real estate, vehicles, and anything else, into total assets, then sums your liabilities, mortgage, student loans, auto loans, credit cards, and other debt, into total liabilities. Subtracting the second from the first gives net worth, which can be negative early in life when student debt outweighs savings. The debt-to-asset ratio divides total liabilities by total assets and shows how leveraged you are; a falling ratio over time signals progress. The asset allocation bars show what share each category is of total assets, which helps you spot overexposure to a single illiquid asset such as your home.