1. Choose one valuation date
Use balances from the same date where possible. A bank balance from today and a loan statement from last year describe different positions. If a value is an estimate, keep a note of the estimate and the date.
Choose one currency for the calculation. Convert foreign-currency balances yourself using a rate for the valuation date. Exitmargin does not fetch exchange rates or convert balances.
2. List what you own
An asset is something you own that has financial value. Use a current balance or a reasonable current estimate, rather than the amount you originally paid.
- Cash, savings accounts, and deposits.
- The current value of investments and retirement accounts.
- Your ownership share of property and other assets.
- Gold or other valuables, when you can make a reasonable valuation.
3. List what you owe
A liability is an amount you owe. Use the remaining debt balance, not the monthly repayment and not the original amount borrowed. Enter debts as positive amounts; the calculation subtracts them.
- Outstanding home, vehicle, education, and personal loans.
- Credit card balances owed on the valuation date.
- Other debts you are responsible for repaying.
4. Avoid counting the same value twice
If your share of a home is worth 2,000,000 and your share of the remaining loan is 1,200,000, record the full 2,000,000 as an asset and 1,200,000 as a liability. The net contribution is 800,000.
Do not enter home equity of 800,000 as the asset and also subtract the 1,200,000 loan. That would subtract the loan twice. Likewise, do not count both an investment account total and each investment inside it.
5. Subtract debt from assets
Here is a synthetic example in one currency: savings of 100,000, investments of 400,000, and property of 2,000,000 give total assets of 2,500,000. A home loan of 1,200,000 and other debt of 50,000 give total liabilities of 1,250,000.
Net worth = 2,500,000 − 1,250,000 = 1,250,000. If debt exceeds assets, the result is negative. Keep that negative value: it describes the position honestly.
6. Keep the result in context
Net worth does not tell you how much cash is available for a bill. Property and retirement savings may not be available to spend. It also does not explain whether a change came from saving, market movement, borrowing, or a corrected estimate.
Save the date and balances so you can compare them later. A useful comparison uses the same scope, currency, and valuation method. There is no required recording schedule.
Apply the method to your country’s accounts
The formula stays the same. Account ownership, pension rights, access, and debt conventions need local context. Read the matched guide before using its calculator; changing a currency label alone does not resolve those differences.
India: EPF, PPF, NPS, deposits, and valuation limits →
US: vested retirement balances, IRAs, and debt →
Sources and scope
These are general explanations and product instructions, not personal investment, tax, or debt advice. The examples are synthetic. Product instructions describe the current app.
For product details, read How it works and Data & privacy. Report a correction through Help & contact.