How to Calculate Your Net Worth (With a Real Example)
By the QuickYield Team · Published August 26, 2026 · 5 min read
How do you calculate net worth? Add up everything you own (assets), add up everything you owe (liabilities), and subtract the second from the first. If you have ₹70,00,000 in assets and ₹31,00,000 in liabilities, your net worth is ₹39,00,000 — not your salary, not your bank balance, and not your property value alone.
What actually counts as an asset
Cash and bank deposits, investments (stocks, mutual funds, PPF, EPF balance), and property or other valuable assets (a car, gold, a second home) all count. Your primary residence counts too, though some people choose to exclude it since you can’t easily convert it to cash without somewhere else to live — there’s no single “correct” convention here, just be consistent about what you include each time you check your number.
What actually counts as a liability
Any loan outstanding — home loan, car loan, personal loan — plus credit card balances and any other money you owe. A common mistake is only counting “big” debts like a home loan and forgetting smaller recurring liabilities like a credit card balance carried month to month, which still reduces your real net worth even though it feels less significant.
A worked example
| Assets | Amount |
|---|---|
| Cash & deposits | ₹5,00,000 |
| Investments | ₹15,00,000 |
| Property & other assets | ₹50,00,000 |
| Total assets | ₹70,00,000 |
| Liabilities | Amount |
|---|---|
| Loans outstanding | ₹30,00,000 |
| Other liabilities (credit cards etc.) | ₹1,00,000 |
| Total liabilities | ₹31,00,000 |
Net worth = ₹70,00,000 − ₹31,00,000 = ₹39,00,000. The debt-to-assets ratio here (liabilities ÷ assets) is 44% — a useful secondary number since it shows how leveraged your assets are, independent of their absolute size. Run your own numbers with our Net Worth Calculator.
Why net worth matters more than income
A high salary with high debt and no savings can mean a lower net worth than a modest salary with consistent saving and no debt — income is a flow, net worth is a snapshot of what you’ve actually kept and built. Tracking net worth over time (say, every 6 months) is a far better measure of financial progress than tracking income alone, since it captures saving discipline and debt paydown that income figures completely miss.
Frequently asked questions
›Should I include my house in my net worth calculation?
Most people do include their primary residence’s market value as an asset, though it’s less liquid than cash or investments — some prefer to track net worth both with and without it to see the difference.
›Is a negative net worth bad?
It’s common early in life — a recent graduate with education loan debt and no assets yet typically has negative net worth, and it’s not unusual for it to take several years of saving and debt paydown to turn positive.
›How often should I check my net worth?
Every 6-12 months is a common cadence — frequent enough to see meaningful trend changes, infrequent enough to avoid getting anxious over short-term market swings in your investments.
›Does net worth include retirement accounts like EPF and PPF?
Yes — EPF, PPF, NPS, and similar retirement savings count as assets even though you can’t access them immediately, since they represent real value you’ve accumulated.
Try it yourself
Open the Net Worth Calculator →
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This article is for general information only and isn’t financial, tax, or legal advice. See our disclaimer.