01 How the Analysis Works
Net Worth is calculated by subtracting your total liabilities from your total assets.
Liquid Savings minus Unsecured Debt compares your investments and bank savings with unsecured debt such as credit cards, student loans, and other unsecured loans.
Liquid Savings to Unsecured Debt Ratio shows how your liquid savings compare with your listed unsecured debt.
Short-Term to Long-Term Savings compares your liquid savings with your retirement savings to provide another view of how your savings are distributed.
Track the Direction
A single net-worth number is useful, but watching how it changes over time can provide more insight into your financial progress.
Separate Assets from Debt
Understanding what you own and what you owe can help identify where additional savings, investing, or debt reduction may have the greatest impact.
Watch Liquid Resources
Liquid savings can provide flexibility for unexpected expenses and short-term needs, while retirement accounts are generally intended for longer-term goals.
Using Your Results
- Update your values periodically so you can see whether your overall financial position is improving.
- Review your largest liabilities separately. A positive net worth does not necessarily mean every debt is inexpensive or manageable.
- Consider both your total net worth and the composition of your assets and liabilities.
- Use the ratios as additional perspectives rather than as standalone measures of financial health.
This calculator is a snapshot based on the information you enter. Values can change as market values, balances, savings, and debts change.