What Is Net Worth? How to Calculate and Grow Yours (2026)
March 2026 · 7 min read
Quick Answer
Net worth is your total assets minus total liabilities. If you own $200,000 in assets and owe $120,000 your net worth is $80,000. The median net worth in the US is around $192,700. For ages 35–44 the median is $135,300.
Average Net Worth by Age in the US (2026)
How does your net worth compare to peers in your age group?
| Age Group | Median Net Worth | Average Net Worth |
|---|---|---|
| Under 35 | $39,000 | $183,000 |
| 35–44 | $135,300 | $549,000 |
| 45–54 | $247,200 | $975,800 |
| 55–64 | $364,500 | $1,566,900 |
| 65–74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
How to Increase Your Net Worth
- →Increase income — the most powerful lever for building net worth
- →Reduce liabilities — pay down debt starting with highest interest rates
- →Invest consistently — every dollar invested in index funds grows over time
- →Avoid lifestyle inflation — when income rises keep expenses flat
- →Build home equity — mortgage payments build assets unlike rent
- →Maximise retirement accounts — tax-advantaged growth accelerates net worth
- →Track monthly — awareness of your net worth creates better financial habits
Net Worth vs Income
High income does not automatically mean high net worth. A doctor earning $300,000 with $500,000 in student loans and a $800,000 mortgage may have a lower net worth than a teacher earning $60,000 who has saved consistently for 20 years. Net worth is built through the gap between income and spending not through income alone.
Calculate Your Net Worth Free
Use our free net worth calculator to add up your assets and liabilities in minutes.
Calculate Net Worth Free →Frequently Asked Questions
What is considered a good net worth at 30?
A common guideline is to have a net worth equal to your annual salary by age 30. The median US net worth for those under 35 is around $39,000. A net worth of $100,000+ at 30 puts you well ahead of average.
What counts as an asset in net worth?
Assets include cash and savings, retirement accounts, investment accounts, home equity, vehicles, business equity and valuable personal property like jewelry. Use current market value not purchase price.
What counts as a liability in net worth?
Liabilities include mortgage balance, car loans, student loans, credit card balances, personal loans and any other money you owe. Use the current payoff balance.
Is net worth the same as wealth?
Net worth and wealth are closely related but not identical. Net worth is a snapshot of assets minus liabilities at one point in time. Wealth also considers income streams, earning potential and financial security.
How often should I calculate my net worth?
Calculate your net worth monthly or quarterly. Tracking it over time is more valuable than any single number. A rising net worth trend shows your financial plan is working.