"What's my net worth?" It's one of the most important financial questions you can answer — and one most people get wrong.
Your net worth isn't your salary, your home's value, or your 401(k) balance alone. It's the complete picture of where you stand financially, and knowing this number is the foundation of every smart retirement decision.
Updated April 2026 — Benchmarks reflect current Federal Reserve Survey of Consumer Finances data.
The Net Worth Formula
Net worth is simple math:
Assets (what you own) − Liabilities (what you owe) = Net Worth
That's it. But the devil is in accurately listing both sides of the equation.
Step 1: Add Up All Your Assets
Liquid Assets (Cash & Equivalents)
- Checking accounts
- Savings accounts (including high-yield)
- Money market accounts
- Certificates of deposit (CDs)
- Cash value of life insurance policies
Investment Assets
- 401(k) and 403(b) accounts
- Traditional IRA balances
- Roth IRA balances
- Taxable brokerage accounts
- Health Savings Account (HSA)
- Stock options or RSUs (vested only)
- Annuities (cash surrender value)
- 529 education savings plans
Real Estate
- Primary home (current market value, not purchase price)
- Rental properties
- Vacation homes
- Land or lots
Other Assets
- Vehicles (current market value via KBB or Edmunds)
- Business ownership interest
- Collectibles, jewelry, art (appraised value only — be conservative)
- Money owed to you (documented loans to others)
What NOT to Include
- Future Social Security benefits (they're income, not an asset)
- Potential inheritance (nothing is guaranteed)
- Personal belongings at replacement cost (furniture, clothes, etc.)
- Sentimental value of anything
Step 2: Add Up All Your Liabilities
Mortgage Debt
- Primary home mortgage (remaining balance)
- Home equity loans or lines of credit (HELOC)
- Rental property mortgages
Consumer Debt
- Credit card balances
- Auto loans
- Personal loans
- Student loans (yours or co-signed)
Other Liabilities
- Medical debt
- Tax obligations owed (back taxes, estimated taxes due)
- Business debt you're personally liable for
- Margin loans on investment accounts
- Money you owe others
Model your own retirement scenarios
See how market volatility impacts your plan with RetirePro's free Monte Carlo simulator.
Try It Free →Step 3: Do the Math
| Category | Amount |
|---|---|
| Total Assets | $ _______ |
| Total Liabilities | − $ _______ |
| Net Worth | = $ _______ |
A negative number is okay — it just means you have more debt than assets. Millions of Americans have a negative net worth, especially early in their careers with student loans and mortgages. What matters is the trend — is your net worth growing over time?
Net Worth Benchmarks by Age
How does your net worth compare? Here are the 2026 benchmarks from the Federal Reserve:
| Age Range | Median Net Worth | Average Net Worth | Top 25% |
|---|---|---|---|
| 25–34 | $39,000 | $183,000 | $200,000+ |
| 35–44 | $135,000 | $549,000 | $500,000+ |
| 45–54 | $247,000 | $900,000 | $800,000+ |
| 55–64 | $364,000 | $1,175,000 | $1,100,000+ |
| 65–74 | $409,000 | $1,217,000 | $1,200,000+ |
| 75+ | $335,000 | $977,000 | $950,000+ |
Important: The median (middle value) is more useful than the average for comparison. Averages are skewed high by ultra-wealthy outliers.
The Retirement-Specific Net Worth Check
For retirement planning, your investable net worth matters more than total net worth. Here's why:
Total net worth includes your house, cars, and other assets that don't generate retirement income.
Investable net worth = Total net worth − Home equity − Car value − Non-liquid assets
Example:
- Total net worth: $850,000
- Home equity: $320,000
- Vehicles: $35,000
- Investable net worth: $495,000
That $495,000 is what actually funds your retirement income (alongside Social Security and any pensions). It's the number that matters for withdrawal rate calculations and Monte Carlo simulations.
Common Net Worth Mistakes to Avoid
Mistake 1: Overvaluing Your Home
Your home is typically your largest asset, but many people use Zillow's "Zestimate" or their own optimistic guess. Be conservative:
- Use the lower end of comparable sales in your neighborhood
- Subtract 6–8% for estimated selling costs (agent commissions, closing costs, repairs)
- Better yet: Get a professional appraisal if you're within 5 years of retirement
Mistake 2: Ignoring Pre-Tax vs. Post-Tax Values
A $500,000 traditional 401(k) is NOT worth $500,000 to you. After federal and state taxes on withdrawals, it might be worth $375,000–$425,000 in spending power.
For a more accurate net worth:
- Count Roth accounts at full value (withdrawals are tax-free)
- Discount traditional accounts by 20–30% for your estimated tax rate
- HSA accounts count at full value if used for medical expenses
Mistake 3: Forgetting Liabilities
People often miss:
- Co-signed loans for children
- Unpaid tax obligations
- HELOC balances
- Margin loans in brokerage accounts
- Future obligations like promised financial help to family
Mistake 4: Counting Unstable Assets
Don't count:
- Crypto at today's high (use a conservative estimate or exclude)
- Stock options that haven't vested
- Inheritance you expect but haven't received
- Business value you can't easily liquidate
Mistake 5: Checking Only Once
Net worth is a moving target. Check it quarterly or at minimum every six months. The trend matters more than any single snapshot.
How to Grow Your Net Worth Before Retirement
The Big Three Levers
- Increase savings rate: Every additional 1% of income saved accelerates your net worth growth
- Pay down high-interest debt: Eliminating a 7% auto loan is equivalent to earning 7% guaranteed return
- Maximize tax-advantaged accounts: 401(k) and IRA contributions grow tax-deferred, compounding faster
Quick Wins in Your 50s and 60s
- Catch-up contributions: Extra $7,500/year in 401(k) if over 50 ($11,250 if ages 60–63 under SECURE 2.0)
- IRA catch-up: Extra $1,000/year if over 50
- Pay off mortgage before retirement — eliminates your biggest monthly expense and boosts cash flow
- Downsize strategically — move to a lower-cost area and invest the home equity difference
Track Your Net Worth With RetirePro
RetirePro provides a complete financial dashboard that tracks all the components of your retirement picture:
- Aggregate all accounts — 401(k), IRA, Roth, taxable, savings in one view
- Year-by-year projections — see how your net worth evolves through retirement
- Pre-tax vs. post-tax analysis — understand your real spending power
- Monte Carlo stress testing — know if your net worth survives market downturns
Knowing your net worth isn't a one-time exercise. It's the starting point that makes every other retirement decision — when to retire, how much to spend, and how to invest — a calculated choice instead of a guess.
Key Takeaways
- Net worth = Assets − Liabilities — include everything on both sides
- Investable net worth is what actually funds retirement (exclude home equity and cars)
- Discount traditional 401(k)/IRA values by 20–30% for taxes; count Roth at full value
- Be conservative on home values, business interests, and volatile assets
- Check quarterly — the trend matters more than any single number
- Use RetirePro to track your complete retirement picture and project net worth over time