# Accurately Calculating Your Net Worth

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Last Updated on April 27, 2024 by Umer Malik

This basic net worth calculation might not be sufficient for certain applications. This means that you might need to calculate your tangible net worth. This number is your net worth, without assumptions or estimations. If you have assets such as copyrights, patents or other intellectual property (IP), you will need to calculate this figure.

You can calculate your net worth by subtracting all your liabilities and debts from your assets. Some items may not be easily sold or are intangible and therefore cannot be included in the calculations that financial institutions use to determine your loan eligibility.

## How to calculate your net worth

It is an effective way to assess your financial health. You can use many online tools and calculators like Prillionaires wealth tracker for high net-worth individuals and for people with multiple bank accounts, but it is worth knowing how to do the calculations yourself to get a better understanding of your financial situation. These steps will help you calculate your net worth.

### 1. Calculate the value of your assets

It is important to start by making a complete list of all assets. It’s easy to forget important items so be sure to include them:

After you have created the list, it is time to calculate the value of each item. Websites like Zillow can help you get an estimate of the house’s value. To find out how much your car is worth, you can visit Edmunds or Kelley Blue Book. Amazon, eBay, and other online retailers can help you determine the value of your other important possessions, such as computers, gaming systems, or recreational equipment.

### 2. List all your debts

Next, create a comprehensive list of all your liabilities. These are:

These numbers are often available online. However, you might need to contact your bank or loan officer to determine the exact amount. Although listing your liabilities is less fun than listing your assets it is essential to the final calculation.

### 3. Add the sums to calculate the totals

Next, add up your liabilities and assets to calculate your net worth. This will make it easier to add up the totals of your assets and liabilities. It should be easy to use a spreadsheet to do the calculations. Now it’s time to subtract your assets from your liabilities. Once you’ve done that, your net worth is the result.