Net worth
Definition
The value of everything you own minus everything you owe. It can be positive or negative.
Formula
Net worth = Total assets − Total liabilities
Example
$15,000 in savings plus a $10,000 car, minus a $6,000 car loan and $3,000 of card debt, gives a net worth of $16,000.
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General educational information, not personal financial advice. See our disclaimer.
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· Personal Finance
How to Calculate Your Net Worth (and Why It Matters More Than Income)
24 mins read
