Jasmine Birtles
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How to Calculate Your Net Worth (and Why It’s Easier Than You Think!)
Ruby Layram
5th Nov 2025
Ever wondered how financially healthy you really are? Not how much you earn, but how much you own. That’s where net worth comes in.
Your net worth gives you the clearest snapshot of your overall financial situation. It shows what you truly have, not just what’s in your bank account today.
And the best bit? You don’t need a financial adviser to work it out. You can calculate it yourself in about 15 minutes.
Here’s how…
Step 1: Understand What Net Worth Means
Your net worth is simply:
Everything you own (your assets), MINUS
Everything you owe (your liabilities)
It’s the number that tells you what you’d have left if you sold all your assets and paid off all your debts.
Don’t worry if it’s not a huge number, or even if it’s negative right now. This is just your starting point, and tracking it regularly helps you see your progress over time.
Step 2: Add Up Your Assets (Everything You Own)
Let’s start with the fun part, counting what you have.
List all your assets and their current market value, not what you paid for them, but what they’re worth today.
Here’s what to include:
Cash & savings
- Money in your current accounts
- Savings accounts and ISAs
- Emergency fund
- Cash tucked away at home
Investments
- Stocks and shares
- Index funds or ETFs
- Bonds
- Cryptocurrency (yes, it counts, but note the market value can change daily!)
Property
- Your home (use an online valuation estimate)
- Any rental properties or land you own
Personal assets
- Your car or motorbike (use a site like Auto Trader for current value)
- Jewellery, art, collectibles, or antiques (if they could realistically be sold)
- Electronics (like high-end computers, cameras, or musical instruments)
Long-term assets
- Pensions and retirement accounts (check your most recent statement)
- Life insurance policies with cash value
- Business ownership or equity in a company
Don’t overlook these:
- Loyalty points with cash value (e.g. air miles or cashback balances)
- Valuable domain names or digital assets
- Royalties, intellectual property, or online income streams
- Add all of these up for your total assets.
Step 3: Subtract Your Liabilities (Everything You Owe)
Now for the less glamorous part, your liabilities. These are all your debts and financial obligations.
Include:
Debts & Loans
- Credit card balances
- Overdrafts
- Personal loans or car finance
- Buy Now, Pay Later balances
Mortgages
- Outstanding balance on your home mortgage
- Any other property loans
Other Financial Obligations
- Student loans
- Tax bills
- Money owed to friends or family
Add them all together for your total liabilities.
Step 4: Do the Math
Now just subtract your total liabilities from your total assets.
Net Worth = Assets – Liabilities
Example:
- Total assets: £300,000
- Total liabilities: £220,000
Net worth = £80,000
That’s your current financial position.
Step 5: Track It Regularly
Your net worth isn’t a one-time calculation. It’s a living number that changes as your financial situation evolves.
Track it every 3–6 months to see your progress. You might find your debts shrinking, your investments growing, and your confidence soaring.
Tip: Use a spreadsheet or free personal finance app to make tracking easy.
Why Knowing Your Net Worth Matters
Knowing your net worth helps you:
- See the big picture of your finances
- Identify areas to improve (like high-interest debt)
- Set meaningful financial goals
- Stay motivated to save and invest
It’s not about comparing yourself to anyone else; it’s about building your own financial freedom with clarity and confidence.
Final thoughts
Your net worth is your financial compass; it shows where you are and helps you plan where you want to go.
So grab a notebook (or open a spreadsheet), list your assets and debts, and find out your number today.
You might be pleasantly surprised, and if not, you’ve just taken the first smart step toward building real wealth.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies, are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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