Net Worth Help

Net Worth = Assets - Liabilities

Net worth (sometimes referred to as "net assets") is the amount of assets a person has without his/her liabilities. Without understanding what these terms mean, you will not understand this concept.

An asset is an amount of money that is yours. It is all the money you own as an individual. In the financial world, liability is money that you owe to someone/something else. It is what you must take from your own money to give to another party. The word "net" in the financial world can be substituted for the word "total" or "complete." Worth is much the same thing as "asset" as it refers to the amount of money you own.

Net worth, therefore, is the amount of money you will hold after you pay any money that you owe to another party.

To use our Net Worth calculator, enter the amount of assets you hold (or held at a certain time) in the box labeled "Assets" and enter the amount of liabilities that you owe (or owed at a certain time) in the box labeled "Liabilities." To get your net worth, press "Calculate."

Works Cited
"Net Worth." Wikipedia. 21 April, 2006. Wikimedia Foundation, Inc. 17 July 2006.
     <http://en.wikipedia.org/wiki/Net_worth>.