EuroCalc

What is Net Worth?

Net worth is the difference between what you own (assets) and what you owe (liabilities), representing the true financial position of an individual or household at a single point in time.

Net worth is the personal-finance equivalent of a balance sheet. Assets include cash, investments, retirement accounts, property and meaningful personal belongings. Liabilities include mortgages, student loans, car loans, credit card balances and any other debt.

Tracking net worth monthly is the most honest measure of financial progress because it captures the full picture: paying off debt, saving, investing and asset appreciation all show up. A rising net worth across years is what builds long-term financial security.

Formula
Net Worth = Total Assets − Total Liabilities
Example

A household owns a CHF 1m home, CHF 300k in investments and CHF 30k cash, against CHF 600k mortgage and CHF 20k loans — net worth is CHF 710k.

Related terms

Budget

A budget is a written plan that allocates expected income to spending, saving and debt repayment categories over a defined period, used to control finances and reach goals.

Emergency Fund

An emergency fund is liquid savings held in a separate account to cover unexpected expenses or income loss — job loss, medical bills, major car or home repairs — without resorting to debt.

FIRE Movement

FIRE — Financial Independence, Retire Early — is a movement and lifestyle that uses aggressive saving (typically 50–70% of income) and low-cost index investing to build enough wealth to retire decades before the traditional age.

Retirement Planning

Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve them — covering savings, investments, insurance, taxes and withdrawal strategy.

Frequently asked questions

Should I include my car?+

Yes, at honest market value — but expect it to depreciate fast.

What about my pension?+

Include vested balances; defined-benefit values are harder to estimate, so use the actuarial transfer value.

How often should I update it?+

Monthly is ideal; quarterly is realistic for most households.