In the example, assets of $765,000 minus debts of $415,000 leave a net worth of $350,000, and debts equal 54.2% of assets. Type in your own home value, savings, investments and debts above to see where you stand today.
What net worth means
Net worth is what you own minus what you owe, a snapshot of your finances on a single day. It can be negative. That is common for young people with student loans or a new mortgage.
What counts as an asset
Include the market value of your home, cash and savings, investments and retirement accounts, plus vehicles and anything else you could sell. Use realistic values, not what you paid or what you hope to get. Skip items with little resale value, such as furniture or clothes.
What counts as a debt
Add the mortgage balance, loans and lines of credit, credit card balances and any other money owed. Use today’s balance, not the original amount. A car loan belongs here, and so does money owed to family if you are expected to repay it.
Reading the debt ratio
Debts divided by assets show how much of what you own is financed. At 54.2%, more than half the value is offset by debt. Over the years a falling ratio means you are building equity. A rising one warns that borrowing is outpacing savings.
Tracking it over time
Work out your net worth once or twice a year and keep the numbers. The trend matters more than any single figure. Big swings usually come from home values, investment markets or debt payoffs, so check which one moved.
Ways to improve it
Pay down high-interest debt first, since it costs the most. Add to savings on a regular schedule, ideally in a TFSA or RRSP. Be wary of large purchases that lose value fast. Small, steady habits do more for net worth than one big move.
Net worth by age
There is no single right number. Net worth tends to grow slowly in your twenties, faster in your thirties and forties, and peak near retirement. Compare yourself with your own past figures, not with other people. Someone with a home and a mortgage may show a low net worth for years, and that is normal.
What net worth leaves out
It says nothing about cash flow. A person whose wealth sits in a home can still struggle with monthly bills, so pair the number with a budget. Market values also change, and a home or a portfolio can swing your total from one year to the next.
Gathering the figures and setting a target
Use recent statements for accounts and loans, and a recent estimate for your home from a listing service or an appraisal. Update on the same date each period, such as January 1, so the trend stays reliable even if a single value is rough. Then pick a goal for the next year, such as a $20,000 rise, and split it into a monthly figure.
Where to go next
Plan monthly cash flow with the monthly budget calculator. See how savings grow in the retirement calculator. Card balances weighing on your ratio? Try the credit card payoff calculator.
Frequently asked questions
How do I calculate net worth?
Add all your assets and subtract all your debts.
Can net worth be negative?
Yes. It is common early in a career or after a first home purchase.
Should I count my home?
Yes, at its realistic market value, along with the mortgage as a debt.
What is a good debt ratio?
Lower is safer, and a falling ratio over time is a good sign.
How often should I check it?
Once or twice a year.
Does it include my pension?
Only if you can estimate its value. Many people leave it out.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.