What Is Net Worth
Net worth is the value of everything you own minus everything you owe. It equals total assets minus total liabilities. A positive net worth means assets exceed debts; a negative net worth means debts exceed assets.
What Are Net Assets
Net assets refer to the total value of assets after subtracting all liabilities. The term is often used for individuals, businesses, and funds. It shows the actual financial position by removing what is owed from what is owned.
How to Calculate Net Worth and Net Assets
To calculate net worth or net assets, list all assets such as cash, investments, real estate, and retirement accounts. Then list all liabilities like mortgages, loans, and credit card balances. Subtract total liabilities from total assets. For more details on asset valuation and financial reporting standards, see the Investopedia guide on net worth.
