function calculateNetWorth() {
var cash = parseFloat(document.getElementById('cashAssets').value) || 0;
var investments = parseFloat(document.getElementById('investmentAssets').value) || 0;
var realEstate = parseFloat(document.getElementById('realEstateAssets').value) || 0;
var vehicles = parseFloat(document.getElementById('vehicleAssets').value) || 0;
var otherAssets = parseFloat(document.getElementById('otherAssets').value) || 0;
var mortgage = parseFloat(document.getElementById('mortgageDebt').value) || 0;
var student = parseFloat(document.getElementById('studentDebt').value) || 0;
var credit = parseFloat(document.getElementById('creditDebt').value) || 0;
var vehicleDebt = parseFloat(document.getElementById('vehicleDebt').value) || 0;
var otherDebt = parseFloat(document.getElementById('otherDebt').value) || 0;
var totalAssets = cash + investments + realEstate + vehicles + otherAssets;
var totalLiabilities = mortgage + student + credit + vehicleDebt + otherDebt;
var netWorth = totalAssets – totalLiabilities;
var resultDiv = document.getElementById('netWorthResult');
var valueDiv = document.getElementById('netWorthValue');
var breakdownP = document.getElementById('netWorthBreakdown');
resultDiv.style.display = 'block';
valueDiv.innerText = '$' + netWorth.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
if (netWorth < 0) {
valueDiv.style.color = '#e74c3c';
} else {
valueDiv.style.color = '#27ae60';
}
breakdownP.innerText = 'Assets: $' + totalAssets.toLocaleString() + ' | Liabilities: $' + totalLiabilities.toLocaleString();
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}
Understanding Your Net Worth
Your net worth is the single most important metric for measuring your financial health. It provides a "snapshot" of your financial position by subtracting everything you owe (liabilities) from everything you own (assets).
How to Calculate Net Worth
The formula for net worth is simple: Assets – Liabilities = Net Worth.
Assets: These are items of value. They include cash in checking or savings accounts, retirement accounts (401ks, IRAs), brokerage accounts, the current market value of your home, vehicles, and jewelry.
Liabilities: These are your debts. They include your remaining mortgage balance, student loans, car loans, credit card debt, and any personal loans.
Tracking this number over time allows you to see if you are making progress toward your long-term goals. If your net worth is increasing, you are either growing your assets or reducing your debt. If it is decreasing, it may be time to evaluate your spending or investment strategy.
Pro Tip: Don't be discouraged by a negative net worth, especially if you are a recent graduate with student loans. Focus on consistent debt repayment and regular contributions to your retirement accounts to move that number into the positive range.