A net worth calculator is a tool that helps you calculate the total value of your assets minus your liabilities. The resulting figure is your net worth, which is a snapshot of your financial health. To use a net worth calculator, you typically input information such as your assets, such as cash, investments, real estate, and personal property, and your liabilities, such as mortgages, credit card debt, and other loans.
The calculator will then provide an estimate of your net worth. It can also give you a breakdown of your assets and liabilities, which can help you see where you may need to make adjustments to improve your net worth.
Net worth calculators are often simple spreadsheets, you can find them online, or you can create your own using a basic spreadsheet program. It’s important to update your net worth periodically, so you can track your progress over time.
Keep in mind that a net worth calculator is a snapshot and does not take into account the potential appreciation or depreciation of assets and it does not take into account future cash flows such as salary, inheritance or future investments, thus it should be used as a guide and not a definitive measure of your overall financial health.