How to Calculate Your Net Worth: A Step-by-Step Guide
Published 9th of May 2011·Updated 6 April 2026
Reviewed by: Reviewed for accuracy April 2026
Your net worth is the total value of everything you own minus everything you owe. It is one of the clearest snapshots of your financial health and a useful benchmark when applying for credit, writing a will, or planning for retirement. Calculating it takes under an hour and only requires basic financial information.
Short Summary
Net worth equals total assets minus total liabilities. A positive figure means you own more than you owe; a negative figure means the opposite, which is common early in life or when carrying a mortgage.
Assets include property, savings, investments, and valuable possessions. Liabilities include mortgages, loans, credit card balances, and any other money you owe.
You should recalculate your net worth at least once a year. Tracking it over time shows whether your financial position is improving and helps you set realistic goals.
Be honest with valuations. Use market values, not sentimental ones. A property is worth what a buyer would pay today, not what you hope to sell it for in five years.
What counts as an asset?
An asset is anything you own that has a monetary value. Start with the largest and work down.
List your property first, using its current market value. Check recent sold prices on Rightmove or Zoopla for a realistic figure. Next, list vehicles using a site such as AutoTrader or Glass's Guide. Then add liquid assets: current accounts, savings accounts, ISAs, shares, bonds, and pension funds (use the current transfer value shown on your latest statement).
Finally, include valuable personal possessions such as jewellery, antiques, art, and collectibles. Be conservative with these; they are only worth what someone will actually pay.
Add everything together to get your total assets figure.
What counts as a liability?
A liability is any money you owe to another person or organisation. List every debt, starting with the largest balance.
| Liability type | Where to find the balance |
|---|---|
| Mortgage | Your most recent mortgage statement |
| Personal loans | Your loan agreement or online account |
| Car finance | Your finance agreement |
| Credit card debt | Your card statements |
| Overdraft | Your bank account |
| Student loan | Your Student Loans Company online account |
| Buy-now-pay-later | Your BNPL provider app or account |
Add these together to get your total liabilities figure.
How do I calculate my net worth?
Subtract your total liabilities from your total assets.
Net worth = Total assets - Total liabilities
If your assets total £320,000 and your liabilities total £190,000, your net worth is £130,000. If your assets total £50,000 and your liabilities total £75,000, your net worth is -£25,000.
A negative net worth is not a crisis. Many people have a negative net worth in their twenties and thirties due to mortgages and student loans. The direction of travel matters more than the figure itself.
Is my net worth good or bad?
There is no universal benchmark, but context helps. According to the Office for National Statistics, the median household net worth in Great Britain is around £302,500, though this figure is heavily influenced by property ownership and rises sharply with age.
A more useful question is: is your net worth growing year on year? If your assets are increasing faster than your liabilities, you are moving in the right direction.
| Age group | Approximate median net worth (ONS data) |
|---|---|
| Under 35 | £26,000 |
| 35-44 | £122,000 |
| 45-54 | £266,000 |
| 55-64 | £384,000 |
| 65+ | £500,000+ |
These figures include property equity and pension wealth. Verify the latest figures at ons.gov.uk.
How often should I recalculate my net worth?
Recalculate once a year, using the same month each time. An annual review lets you compare like-for-like and spot trends. If you have experienced a major financial change, such as buying a property, receiving an inheritance, or paying off a large debt, recalculate straight away.
Keep a simple spreadsheet with the date and each figure. Over five to ten years, the trend line tells you far more than any single year's number.
Can net worth help me apply for credit?
Lenders do not ask for your net worth directly, but the components of it matter. A high level of unsecured debt relative to your income will affect your credit score. Property equity can be used as collateral for secured loans or further mortgages. Savings and investments reassure lenders that you have a financial buffer.
If you are applying for a mortgage, your lender will conduct a detailed assessment of your assets and liabilities as part of affordability checks. The Money Helper service (moneyhelper.org.uk) has free tools to help you prepare.
FAQ
What is the difference between net worth and income?
Income is the money that flows into your finances each month or year. Net worth is the cumulative total of everything you own minus everything you owe. You can have a high income and a low net worth if you spend everything you earn. Conversely, someone on a modest income who saves consistently may build a strong net worth over time.
Does my pension count towards my net worth?
Yes. Your pension pot is an asset. Use the current transfer value shown on your annual pension statement. For defined benefit (final salary) pensions, ask your scheme administrator for a cash equivalent transfer value (CETV), though bear in mind this is complex to calculate and cashing in a defined benefit pension is rarely advisable.
Should I include the value of my car?
Yes, but be realistic. Cars depreciate quickly. Use AutoTrader or a similar site to find the current private sale value, not the dealer retail price.
What if I have joint assets or debts?
Include only your share. For a jointly owned property, include 50 per cent of the equity (current value minus the outstanding mortgage). Do the same for any joint loans or credit cards.
How do I improve my net worth?
There are two levers: increase your assets or reduce your liabilities. Paying down high-interest debt, such as credit cards or personal loans, improves your net worth faster than almost anything else because interest costs compound against you. Building savings in an ISA or pension builds the asset side. Both approaches work; the right balance depends on your interest rates and personal situation. A free adviser at Citizens Advice or MoneyHelper can help you prioritise.
Does my net worth affect my credit score?
Not directly. Credit reference agencies including Experian, Equifax, and TransUnion do not see your overall net worth. They see your borrowing behaviour: payment history, credit utilisation, and how much debt you carry relative to your credit limits. However, reducing debt improves both your net worth and your credit score simultaneously.