Total net worth, assets less liabilities, split into liquid and illiquid.
Net worth
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Total assets
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Liquid assets
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Total liabilities
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Your breakdown
Updates live as you type
Item
Amount
Worked example
Suppose you hold 200,000 pesos in cash and deposits and 500,000 in investments, MP2, and PERA, so 700,000
in liquid assets. On the illiquid side you have a property worth 3,000,000 and vehicles and other items
worth 600,000, a further 3,600,000. Total assets are 4,300,000. Against that you owe 1,500,000 on loans and
50,000 on credit cards, so 1,550,000 of liabilities. Net worth is assets less liabilities, 4,300,000 minus
1,550,000, which is 2,750,000. Worth noting: only 700,000 of that is liquid, while the bulk sits in
property you cannot spend quickly. A healthy balance sheet pairs a positive net worth with enough liquid
assets to cover several months of expenses.
Item
Amount (PHP)
Liquid assets (cash, investments)
₱700,000
Illiquid assets (property, vehicles)
₱3,600,000
Total liabilities
₱1,550,000
Net worth
₱2,750,000
How it is calculated
Net worth is the simplest measure of financial position: everything you own minus everything you owe. The
calculator groups assets into liquid items you can convert to cash quickly, such as bank deposits,
investments, MP2, and PERA, and illiquid items like property and vehicles that take time and cost to sell.
It adds the two groups for total assets, then sums your loans and credit card balances for total
liabilities. Net worth is total assets less total liabilities, and the result can be negative if debts
exceed assets. The liquid breakdown matters because a large net worth tied up in property still leaves you
exposed if you have little cash on hand, which is why an emergency fund is tracked separately. This is a
snapshot at today's values: property and vehicle figures are estimates, and investment balances move with
the market, so it is worth recalculating every few months to see the trend rather than a single number.
Frequently asked questions
How do I calculate my net worth?
Add up everything you own, including cash, investments, the value of property, MP2 and PERA balances, and vehicles, then subtract everything you owe, such as outstanding loans and credit card balances. The result is your net worth. It is worth splitting assets into liquid ones you can spend quickly and illiquid ones like property, since a high net worth tied up in property still needs cash on hand for emergencies.
Should I include my MP2 and PERA balances as assets?
Yes. MP2 is a voluntary Pag-IBIG savings program that pays a tax-free annual dividend, and PERA is a personal equity and retirement account with tax benefits. Both represent real savings you have accumulated and should be included in your asset total. Because you cannot withdraw them instantly without penalty or conditions, they sit closer to the illiquid end of your balance sheet even though they are not physical property.
What is a healthy ratio of liquid to illiquid assets?
There is no single rule, but a common guideline is to hold at least three to six months of living expenses in liquid assets such as cash and bank deposits as an emergency buffer. If most of your net worth sits in property you cannot sell quickly, a financial shock can leave you unable to pay bills even though you look wealthy on paper. Review the liquid portion of your net worth alongside the emergency fund calculator to see whether your buffer is adequate.
How often should I recalculate my net worth?
Recalculating every three to six months gives a useful picture of the trend without over-monitoring. Property and vehicle values are estimates that shift with the market, investment balances change daily, and loan balances drop with every payment. A single snapshot is less informative than comparing the figure month over month or quarter over quarter to confirm that net worth is moving in the right direction over time.