Should I include my house?

Include it, at what it would realistically sell for, and include the mortgage against it. Then look at the liquid figure as well, because equity in a house you live in cannot pay a bill next week.

Include it at trade-in value rather than what you paid, and include the loan. A car is usually the asset that falls fastest while the loan against it does not.

Is a negative net worth bad?

It is common and often temporary. A recent graduate with student debt and a new arrival with a small loan and no assets both sit below zero, and both move up. The number that matters is the direction over a few years, not the sign today.

Net Worth Calculator

What you own less what you owe, plus the version that ignores your house.

Net worth

$268,100

$712,000 owned, $443,900 owed. One number, taken today. The direction over a few years says more than the figure does.

Liquid net worth

-$406,900

Cash-like assets less everything owed

Debt against assets

62%

Above 100% means owing more than owning

Largest holding

Home

$620,000, 87% of assets

Owned against owed

Assets$712,000
Liabilities$443,900

Your total net worth is positive and your liquid net worth is not. That usually means the wealth is in a house, and equity in a house you live in cannot pay a bill next week. Both numbers are true and they answer different questions.

What you own

Home$620,000
RRSP$41,000
TFSA$22,000
Car$14,000
Savings$12,000
Chequing$3,000

Filled bars are liquid. A single line taking most of the chart is worth noticing: it means your whole position depends on one valuation.

What you owe

Mortgage$430,000
Car loan$11,500
Credit card$2,400

Size is not the same as urgency. A $2,400 credit card at 20% costs more each month than $11,500 of car loan at 6%, which is what the debt payoff calculator is for.

What this does

List what you own and what you owe. This gives your net worth, the share of your assets that is financed by debt, and a liquid figure that counts only what you could actually reach this month.

Why this one

It separates liquid net worth from total net worth. Someone with $300,000 of equity in a house and $400 in chequing has a healthy net worth and a real problem, and one number hides that from the other. Naming the largest asset and the largest liability does the same job: it tells you which single line the whole picture depends on.

The formula

net worth  =  everything you own  -  everything you owe
debt against assets  =  liabilities / assets
liquid net worth  =  cash and cash-like assets  -  liabilities

Published so you can check it. A calculator about money that will not show its working is asking to be trusted on the one thing you cannot verify.

Questions

Should I include my house?: Include it, at what it would realistically sell for, and include the mortgage against it. Then look at the liquid figure as well, because equity in a house you live in cannot pay a bill next week.
What about a car?: Include it at trade-in value rather than what you paid, and include the loan. A car is usually the asset that falls fastest while the loan against it does not.
Is a negative net worth bad?: It is common and often temporary. A recent graduate with student debt and a new arrival with a small loan and no assets both sit below zero, and both move up. The number that matters is the direction over a few years, not the sign today.

Your data

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Take it with you

The same calculator as a file you keep. Unzip it, open index.html, and it works with no internet connection at all. Free, and yours to pass on.

Download, 12 KB

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This tool is for education and planning only and does not constitute financial, legal or tax advice. EmpireSheets is not a regulated adviser. Rates, rules and thresholds change, so check anything time sensitive against a current official source before acting on it.