Financial health
How to calculate your net worth (and what the number actually tells you)
One subtraction, done honestly, replaces a dozen vague feelings about how you are doing.
By The North team · 29 August 2026 · 6 min read · Editorial standards
How do I calculate my net worth?
Net worth is what you own minus what you owe. It is the only single figure that describes your whole financial position, and almost nobody in India writes it down.
The formula
Net worth = total assets − total liabilities
That is it. The difficulty is being honest about both sides.
What counts as an asset
- Cash, savings accounts, sweep balances
- Fixed and recurring deposits
- Mutual funds, stocks, bonds
- EPF, PPF, NPS balances
- Gold you would genuinely sell
- Property, at a realistic sale price
What counts as a liability
- Credit card outstanding, including anything on EMI conversion
- Personal, car, education and home loans — the outstanding principal, not the EMI
- Buy-now-pay-later balances
- Money borrowed from family that you intend to repay
| Side | Include | Leave out |
|---|---|---|
| Assets | Things you could convert to money | Future salary, expected inheritance, insurance cover |
| Liabilities | Every outstanding principal | Future interest not yet accrued, monthly bills |
A worked example
Assets: ₹1,20,000 savings, ₹4,50,000 mutual funds, ₹3,80,000 EPF, ₹60,000 gold = ₹6,10,000 plus ₹4,00,000 = ₹10,10,000. Liabilities: ₹85,000 card balance, ₹2,10,000 personal loan = ₹2,95,000. Net worth = ₹7,15,000.
Negative net worth is common in your twenties, especially with an education loan, and it is not a verdict on you. The direction over time is what matters.
What the number is for
- Direction: is it rising quarter over quarter?
- Composition: is it mostly one illiquid asset, like property?
- Leverage: what share of your assets is borrowed?
Debt-to-assets above roughly 50% means most of what you own is financed. Under 20% is comfortable for most households.
Do it now, then quarterly
The net worth calculator does the arithmetic and shows your debt-to-assets ratio. Quarterly is frequent enough; monthly turns a slow measure into noise.
What to do today
List five assets and every liability. Subtract. Save the number with today's date so next quarter has something to compare against. Then read the financial health guide.
Further reading and official information
Read the financial health guide to consider liquidity, debt and saving together. Use IRDAI policyholder education to understand insurance terms, exclusions and rights. The planning thresholds in this article are not official eligibility tests or a guarantee of security.
Frequently asked questions
Should I include my EPF in net worth?
Yes. EPF, PPF and NPS balances are assets you own, even though access is restricted before certain conditions are met.
Do I include my home if I have a loan on it?
Yes — record a realistic market value as an asset and the outstanding loan principal as a liability, so only your equity counts.
Is negative net worth bad?
It is common early in a career, particularly with education loans. What matters is whether the figure improves over successive quarters.
Sources
Your next step
- See the full guideFinancial health — the complete guideWhere do I actually stand right now?
- Calculate yoursNet worth calculatorAdd up what you own, subtract what you owe, and get the one number that matters.
- Read this nextThe eight-point financial health checkA short diagnostic you can run in fifteen minutes, twice a year.
Put this into your own situation. North keeps your Money Map — what you own and owe — so the number updates as your situation changes.
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