Freedom Isn’t Free UK Personal Finance
Budgeting
How to Calculate Your Net Worth (Step-by-Step)
Your salary lies about your wealth. The number that doesn't is the one most people are scared to actually calculate. An afternoon's work and you'll never need to wonder again.
Worked net worth example - typical UK 30-something
| Line | Type | Value |
|---|---|---|
| Cash and savings | Asset | £8,000 |
| Stocks and Shares ISA | Asset | £24,000 |
| Pension | Asset | £62,000 |
| Property value | Asset | £310,000 |
| Mortgage | Liability | -£215,000 |
| Credit card | Liability | -£1,200 |
| Net worth | Total | £187,800 |
Add the assets, subtract the debts. Composition matters as much as the headline.
Key takeaways
1
Net worth is everything you own minus everything you owe, and it is the single best measure of your financial position.
2
List your assets at honest market value, not what you paid or what you wish they were worth.
3
Include your pension. For most people in their 30s and 40s it is the biggest line on the page.
4
Recalculate quarterly. The number itself matters less than the direction it is moving.