User Rating 0.0
Total Usage 6 times
Assets (What you own)
Liabilities (What you owe)
Demographics
Is this tool helpful?

Your feedback helps us improve.

About

Net worth serves as the primary metric for financial health, surpassing income in long-term importance. This calculator aggregates liquid assets, investment portfolios, and real estate holdings, then subtracts all outstanding liabilities. Unlike simple arithmetic tools, this application benchmarks the result against Federal Reserve Survey of Consumer Finances (SCF) data.

Understanding where a specific net worth falls within an age-based cohort helps in adjusting savings rates and risk exposure. A positive net worth indicates solvency, while a negative value highlights the need for debt restructuring. Precision in categorizing assets is required for an accurate picture, particularly when distinguishing between depreciating assets (vehicles) and appreciating ones (equities, real estate).

wealth management net worth assets liabilities financial health

Formulas

The core calculation follows the fundamental accounting equation:

NetWorth = ni=1 Asseti mj=1 Liabilityj

Percentile ranking (P) is derived from the cumulative distribution function (CDF) of the specific age cohort data set S:

P = CDF(NetWorth | AgeGroup) × 100

Reference Data

Age CohortMedian Net WorthTop 10% ThresholdTop 1% Threshold
< 35$13,900$275,000$1,800,000
35-44$91,300$850,000$4,300,000
45-54$168,600$1,400,000$7,200,000
55-64$212,500$2,200,000$10,400,000
65-74$266,400$2,500,000$12,600,000
75+$254,800$2,100,000$9,800,000

Frequently Asked Questions

Yes. Home equity is the market value of the property minus the outstanding mortgage balance. However, financial planners often calculate "Liquid Net Worth" separately, which excludes real estate, as it cannot be quickly converted to cash for emergencies.
Quarterly or semi-annually is standard. Tracking too frequently (e.g., daily) exposes the user to market noise, while annual tracking may miss opportunities to rebalance debt or investments.
Wealth distribution follows a Pareto distribution, where the top 1% holds a disproportionate amount of assets. The average (mean) is skewed upward by billionaires, making the median (50th percentile) a more accurate representation of the typical household.