Your net worth is everything you own minus everything you owe. A popular rule of thumb estimates where you should be:
Target net worth ≈ age × annual pre-tax income ÷ 10
Benchmark table
| Age | Income ₹6 L | Income ₹12 L | Income ₹24 L |
|---|---|---|---|
| 25 | ₹15 L | ₹30 L | ₹60 L |
| 30 | ₹18 L | ₹36 L | ₹72 L |
| 35 | ₹21 L | ₹42 L | ₹84 L |
| 40 | ₹24 L | ₹48 L | ₹96 L |
| 45 | ₹27 L | ₹54 L | ₹1.08 Cr |
| 50 | ₹30 L | ₹60 L | ₹1.2 Cr |
| 55 | ₹33 L | ₹66 L | ₹1.32 Cr |
So a 35-year-old earning ₹12 lakh would aim for about ₹42 lakh. Beating the benchmark suggests you are accumulating wealth faster than typical; being below it is common, especially with a fresh home loan or education debt.
Limits of the rule
- It ignores inflation, your spending level and how much you inherit or support others.
- Property values are lumpy and local; a house can dominate net worth but does not pay your bills.
- It says nothing about how liquid your wealth is. Six months of expenses in cash matters more than a high number you cannot access.
Measure yours in two minutes
Our Net Worth Calculator adds up your assets and liabilities, compares you with this benchmark and gives a financial health score. To see where your money could be in 10–30 years, try the Life Money Simulator.
Frequently asked questions
Is this rule accurate for India?
It is a rough rule of thumb from US research and does not account for Indian property prices, family support or inflation. Use it as a conversation starter, not a verdict.
Should I include my house?
Yes, at market value, but remember it is illiquid. Subtract the outstanding home loan.
What if I am below the target?
Do not panic. Focus on your trend: raise your savings rate, clear expensive debt and invest regularly. The Life Money Simulator lets you test scenarios.