How to Calculate Net Worth
Last Updated: 1 August, 2025Calculating net worth is simple using the fundamental formula: Net Worth = Total Assets – Total Liabilities. This calculation shows your true financial position and wealth. The Net Worth Formula Explained: Net Worth = Assets – Liabilities Step-by-Step Net Worth...
Liabilities vs. Assets vs. Owner’s equity
Last Updated: 1 August, 2025The accounting equation is the fundamental formula that shows how these three components relate: Assets = Liabilities + Owner’s Equity. Understanding Each Component: Assets: Everything you own that has value – Cash and bank accounts – Property and real estate...
