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Net worth · 5 min read

How to Calculate Net Worth

Calculating net worth is a balance sheet exercise: one list for what you own and one list for what you owe.

By Syvoq Editorial Team · Updated July 12, 2026

Key takeaways

Use current balances and realistic values.
Include both the asset and the related debt for financed property.
Save each snapshot date so progress is measurable.
01

List assets at realistic values

Include cash, bank accounts, investments, retirement accounts, property equity, vehicles, and valuable items. Use values you could reasonably defend today.

02

List liabilities in full

Include credit cards, loans, mortgages, unpaid taxes, personal loans, and other balances. Use the current payoff balance where possible.

03

Separate useful subtotals

Total net worth is useful, but investable net worth can be more useful for financial independence planning because it excludes harder-to-spend assets like a primary home.

Worked example

Including a home correctly

A home worth €240,000 with a €180,000 mortgage adds €60,000 of equity to net worth, not the full property value by itself.

Home value€240,000
Mortgage balance-€180,000
Home equity€60,000
Update frequencyMonthly or quarterly

Common mistakes

01

Mixing estimated future values with current balances.

02

Ignoring taxes or selling costs for assets that would be expensive to liquidate.

03

Changing the method every month, which makes the trend less meaningful.

Sources and limitations

Educational content, not individualized financial advice. Confirm material decisions with an official source or regulated professional.

Action steps

Collect account balances
Estimate asset values
Collect debt payoff balances
Subtract liabilities
Save the date of the snapshot