What is my net worth?

Your net worth is basically the value of all your assets, minus all your debt. Here's how to calculate it.

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Tim Falk

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Key takeaways

  • Your net worth is the value of your assets (the things you own) minus your debts or liabilities (the things you owe).
  • It is used as a way to measure your general financial position and overall wealth.
  • Examples of assets include cash in the bank and superannuation, while debt includes personal loans and a mortgage.

What does net worth mean?

Net worth is a way to figure out your overall financial position right now.

As a simple example, consider someone with $5,000 in savings, a car worth $7,000, a personal loan debt of $3,000 and no other assets or liabilities.

Their net worth would then be calculated as $5,000 + $7,000 (assets) - $3,000 (liabilities) = $9,000.

How to calculate your net worth

  1. Make a list of all your assets. As well as obvious assets like your house and car, include shares, other investments, the amount in your transaction and savings accounts, superannuation, businesses, caravans and boats.
  2. Add up the value of all your assets. Add up the value of each asset in your list and be as accurate as possible with your estimates.
  3. Make a list of all your debts. Include your mortgage, credit card debt, car and personal loans, HECS debt, business loans and anything else you can think of.
  4. Add up the value of your debt. Use the amount of each debt to work out the total amount you owe.
  5. Subtract. Subtract your total debt from the total value of your assets. The number you get is your net worth.

What should I include when calculating my net worth?

Assets

  • Australian and international shares and exchange traded funds
  • Real estate you own outright (or the portion of the mortgage that you've paid off)
  • Land you own
  • Cars and boats (or the portion that you own / have paid off)
  • Money in a bank account, savings account or term deposit
  • Your superannuation or SMSF balance
  • The value of any cryptocurrency that you own
  • The value of a business you own

Liabilities

  • Outstanding home loan balance
  • Credit card debt
  • HECS debt or other student loans
  • Personal loan debt
  • Car loans or loans for other items like boats
  • Business loans
Did you know?
Finder's research shows Australian women have significantly less wealth than men. On average, women have $428,000 in net wealth (what you own minus what you owe), while men average $597,000. That's a $169,000 difference, meaning men have about 40% more. It's a stark inequality.
Source: Finder's State of Women's Wealth Report 2025

Why is net worth important?

When you know exactly what your financial position is, you can make informed decisions about your financial future and work to increase your net worth.

For example, if your net worth is negative, you'll know you need to prioritise reducing your debt. If your net worth is positive, you might want to consider a range of investment opportunities that could help you grow your worth even further.

Of course, the reality of net worth isn't quite that simple. For example, you probably don't want to consider selling your house to settle debts, while some of your assets (such as super) can't be accessed until you reach a certain age. So your net worth isn't really a true reflection of how much money you could get your hands on if you cashed in all your assets and paid off any liabilities.

What if I have a negative net worth?

A negative net worth is quite common (especially while you're young). For example, if you've recently finished university it's likely you'll have a large HECS debt which will bring down your net worth. Or, if you've recently taken out a home loan, it's likely you'll have a large debt for this too.

However, a negative net worth could be an indication that you have borrowed too much money. And if you don’t own any assets to offset those liabilities, a negative net worth is the result.

If you have a negative net worth, the first step to turning this around is paying down your debts and reducing your liabilities.

Alison Banney's headshot
Don't disregard your super balance

"Just because you can't access the money in your super until you've retired, don't forget about it when adding up your net worth. Your super is your money, and is likely to be one of the biggest assets that you own by the time you're in your 60s.

While you're young it's really important to make sure you've just got the one super fund in your name and that it's got low fees and strong, long-term returns. Setting this up correctly early on in your career will help you improve your overall net worth significantly by the time you retire."

Editorial Manager, Money

Does net worth change?

Your net worth is changing all the time. If you've just paid for a two-week overseas holiday or taken out a car loan, your net worth will have taken a hit. But if you've paid off your credit cards and made regular deposits into a savings account for the past year, your net worth will be a much more pleasing figure than it was 12 months ago.

How do I improve my net worth?

Build up your savings

If you don't have a mortgage, open a high interest savings account and contribute to it regularly. You'll be able to earn bonus interest when you make regular deposits. If you do already have a mortgage, consider putting cash into an offset account instead to reduce the interest you're paying on your loan.

Invest your money

Investing your money can help you grow your wealth - if you make the right investment decisions. From shares and property to exchange traded funds (ETFs) and even cryptocurrency, there are plenty of ways you can invest your money. If you're new to share trading, learn how to buy shares online with our step-by-step guide.

Cut back on spending

Put together a budget and see where you can cut back on your outgoing expenses. It'll also help you to reduce impulse purchases - these will only have a negative effect on your net worth. Make sure you actually need to make a purchase before parting with your hard-earned dollars.

Don’t over-borrow

Borrowing large amounts will offset the value of any assets you own, so it’s important that you make sensible decisions when borrowing money. Taking out a large loan or multiple loans can severely impact your finances, so make sure you can comfortably afford to service any loan you apply for.

Pay off debt

The lower the value of your liabilities, the better your net worth will be. Setting up a debt payment plan and/or consolidating all your debt into one loan can help.

It's also worth noting that not all debt is equal. Focus on paying down any high interest debt first, such as credit card debt or a personal loan before things like a HECS debt.

Contribute to your superannuation

When you make extra contributions into your superannuation, not only are you helping grow your balance but you can also reduce your taxable income.

Frequently asked questions

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Tim Falk is a writer for Finder, writing across a diverse range of topics. Over the course of his 20-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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2 Responses

    jesslamb's avatar
    jesslambMay 29, 2023

    Should net worth calculation include life insurance as an asset?

      Sarah Megginson's headshotFinder
      SarahMay 30, 2023Finder

      Hi Jess,

      This depends on what you are calculating your net worth for, but generally, it should not be included. While you’re alive, life insurance is not part of your net worth as it can’t be accessed, spent or leveraged. After you die, the proceeds of your life insurance policy become part of your estate for tax purposes.

      Hope this helps!

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