- Net worth = everything you own − everything you owe, each at today’s value.
- Count your home at a realistic sale price, loans at the outstanding balance, and things like cars at resale value or not at all.
- Track three numbers, not one: net worth, the part that is investable (excluding your home) and your emergency fund in months.
- Update it every quarter. The trend matters far more than any single figure.
Salary tells you what comes in. A budget tells you where it goes. Net worth tells you what is left after all of it, across years. It is the closest thing personal finance has to a scoreboard, and most people have never calculated theirs.
The formula is simple
Net worth = total assets − total liabilities
The work is in deciding what goes on each side, and at what value. Here is a typical example for a 32-year-old earning ₹18 lakh a year, who owns a home with a loan on it:
The liabilities are ₹39.8 lakh of loans, mostly the home loan, plus ₹25,000 on credit cards.
Open the calculator (it starts with this example) →What to count, and at what value
| Item | Count it at | Common mistake |
|---|---|---|
| Your home | What similar homes sell for now, minus selling costs | Using the builder’s price or a hopeful estimate |
| Home loan | Outstanding principal today | Using the original loan amount |
| EPF, PPF, NPS | Current balance | Forgetting them entirely |
| Mutual funds and shares | Today’s market value | Using the amount invested |
| Gold | Weight × today’s price, less making charges | Counting jewellery at purchase price |
| Car or bike | Resale value, or leave it out | Counting the purchase price |
| ESOPs and RSUs | Vested and sellable only, after tax | Counting unvested options at full value |
| Life insurance | Only the surrender value of savings policies | Counting the sum assured of a term plan |
| Money lent to friends | Only what you are confident will come back | Counting all of it |
The rule behind all of them: what could you turn this into, in rupees, if you had to? When unsure, be conservative. A slightly low net worth that grows is far more useful than an inflated one.
One number isn’t enough: track three
1. Net worth
The full picture. In the example, ₹60.15 lakh.
2. Investable net worth
A home you live in doesn’t pay your bills, so set it aside and look at what is working for you: savings, deposits, funds, shares and retirement accounts. In the example that is ₹27.7 lakh, less than half of the headline figure. This is the number that matters for early retirement.
3. Emergency fund, in months
Cash you could reach in days, divided by monthly spending including EMIs. The example has ₹4.7 lakh, which covers 4.9 months. A common target is six months, or more if your job is less secure.
What this example’s numbers say
The calculator turns the figures into a health score (73 out of 100 here) and a few plain observations. For this person:
- 72% of wealth is in property and valuables. That is common in India, but it means most of the net worth can’t be spent or moved quickly.
- EMIs take 37% of income. Below 30% leaves more room to save and to handle surprises.
- ₹25,000 on credit cards while holding ₹4.7 lakh in cash. Card interest is often 36–42% a year; paying it off is the best “return” available.
- Only 23% of assets are in investments (deposits, funds and retirement accounts). Regular SIPs would shift the balance over time.
Is my net worth good for my age?
A popular rule of thumb says your net worth should be about age × yearly income ÷ 10. For our 32-year-old on ₹18 lakh, that is ₹57.6 lakh, so ₹60.15 lakh is slightly ahead. It is a rough benchmark from the US, and it ignores your starting point, family support and cost of living, so treat it as a conversation starter, not a grade. Our net worth by age guide explains its limits.
Make it a habit
- Set a reminder for the first weekend of each quarter.
- Update balances from your bank, demat, EPF passbook and loan statements. It takes 15 minutes once the list exists.
- Save a snapshot in the calculator. It keeps them in your browser and draws the trend.
- Look at the change, not the level. Did it grow more than what you saved? That is your investments working.
Frequently asked questions
How do I calculate my net worth in India?
Add the current value of everything you own (bank balances, FDs, mutual funds, shares, EPF, PPF, NPS, gold, property) and subtract everything you owe (outstanding loans and card dues). Use today’s values, not purchase prices.
Should I include my house in my net worth?
Yes, at a realistic sale value, with the home loan as a liability. But also look at your net worth without it, because a home you live in doesn’t generate cash.
Should I include EPF and PPF?
Yes. They are your money, though locked until withdrawal rules allow. Many people forget them, and they are often a large share of savings.
Is a negative net worth bad?
It is common early in a career, especially with an education or home loan. What matters is that it improves year after year.
What is your net worth today?
List what you own and owe, and get a health score and a trend you can track.
Calculate my net worth →The example uses the sample figures in the net worth calculator. The age-based benchmark is a rule of thumb, not a target. This is general education, not financial advice.