Whether you’re an individual, a business owner, or even a company, calculating net worth gives you a clear picture of your financial health. It tells you where you stand financially—how much you own versus how much you owe.
Let’s break it down.
| Year | Assets (₹) | Liabilities (₹) | Net Worth (₹) |
|---|
Total Assets: ₹0
Total Liabilities: ₹0
Net Worth: ₹0
Net worth is the difference between your total assets and total liabilities.
Here’s the formula:
Net Worth = Total Assets – Total Liabilities
Or in a detailed format:
Net Worth = (Asset 1 + Asset 2 + … + Asset N) – (Liability 1 + Liability 2 + … + Liability N)
Examples of Assets:
Examples of Liabilities:
Let’s say Mr. A owns the following assets:
Now, Mr. A’s Net Worth = ₹27,00,000 – ₹5,75,000 = ₹21,25,000
This means Mr. A’s total financial worth at the moment is ₹21.25 lakhs.
But remember, net worth isn’t fixed. It changes over time as you add or reduce assets and liabilities.
Using a net worth calculator helps you:
Your net worth is like your financial report card. It tells you if you’re on the right path or need to make changes.
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