How Net Worth Is Calculated

How to calculate your personal net worth by totalling assets and subtracting liabilities, with UK median wealth benchmarks by age.

Verified against ONS Wealth and Assets Survey (Round 8, April 2020 – March 2022) on 16 Feb 2026

Updated 16 February 2026 4 min read

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Summary

Net worth is the simplest measure of financial health: the total value of everything you own (assets) minus everything you owe (liabilities). A positive net worth means your assets exceed your debts; a negative net worth means you owe more than you own - common among young adults with student loans.

How it works

Net worth is a snapshot at a point in time. It changes as asset values rise or fall and as debts are repaid or incurred. The calculation itself is straightforward - the value comes from accurately categorising and totalling each component.

Assets

Assets are anything of monetary value that you own:

Property - the current market value of any property you own (not what you paid for it)
Savings - bank accounts, cash ISAs, premium bonds, cash holdings
Investments - stocks and shares ISAs, investment accounts, individual shares, funds
Pension - the current transfer value of workplace and personal pensions
Other assets - vehicles, valuables, crypto, business interests

Liabilities

Liabilities are any debts or financial obligations:

Mortgage - the outstanding balance on any property mortgage
Student loans - the current balance owed to the Student Loans Company
Credit cards - outstanding balances on credit and store cards
Car finance - HP, PCP, or personal loan balances for vehicles
Other liabilities - personal loans, overdrafts, money owed to family

The formula

Net Worth = Total Assets − Total Liabilities

Where

Total Assets= Sum of all asset values (property + savings + investments + pension + other)

Total Liabilities= Sum of all outstanding debts (mortgage + student loans + credit cards + car finance + other)

Worked example

Mid-career homeowner, age 42

Property value

£350,000

= £350,000

Savings + Investments + Pension + Other

£25,000 + £40,000 + £80,000 + £10,000

= £155,000

Total assets

£350,000 + £155,000

= £505,000

Total liabilities

£250,000 + £12,000 + £3,000 + £15,000 + £2,000

= £282,000

Result

Net worth = £505,000 − £282,000 = £223,000

UK median net worth by age

The ONS Wealth and Assets Survey (Round 8, April 2020 – March 2022) provides median household total wealth by age of household reference person:

Age band	Median household total wealth
16–24	£15,200
25–34	£109,800
35–44	£209,600
45–54	£301,900
55–64	£496,500
65–74	£502,500
75+	£373,100

Wealth peaks at ages 65–74 (£502,500) - 33 times higher than the youngest households - before declining as pensions are drawn down. The overall median household wealth in Great Britain is £293,700.

Note: ONS suspended accreditation for Round 8 data in June 2025 due to quality concerns at granular levels. The aggregate age-band medians remain the best available UK data.

Inputs explained

Property value - current market value, not purchase price. Use recent comparable sales or an online valuation tool.
Savings - all cash-equivalent holdings: bank accounts, cash ISAs, premium bonds.
Investments - stocks, shares, funds, investment ISAs. Use current portfolio value.
Pension - the transfer value of defined contribution pensions or CETV of defined benefit pensions.
Other assets - vehicles (at resale value, not purchase price), valuables, crypto, business equity.
Mortgage balance - the outstanding amount owed, not the original loan.
Student loans - current balance from the SLC online portal.
Credit cards - total outstanding balance across all cards.
Car finance - the settlement figure, not the original amount financed.
Other liabilities - personal loans, overdrafts, informal debts.

Outputs explained

Net worth - total assets minus total liabilities. The headline number.
Total assets - the sum of all asset categories.
Total liabilities - the sum of all debt categories.
Asset/liability split - a visual bar showing the proportion of assets to liabilities.
Breakdown charts - how assets and liabilities are distributed across categories.

Assumptions & limitations

Property value is self-reported - the calculator does not adjust for market conditions or location. Use a recent valuation.
Pension values are approximate - defined benefit pensions are notoriously hard to value. The cash equivalent transfer value (CETV) is one approach but may not reflect the true retirement income value.
Student loans behave like a tax - UK Plan 2 and Plan 5 student loans are written off after 30/40 years and repayment is income-contingent. Including the full balance as a liability may overstate its impact on financial health.
Net worth is a snapshot - it says nothing about income, cash flow, or financial security. Someone with £500,000 net worth tied up in an illiquid property and no savings may be less financially resilient than someone with £200,000 in liquid assets.
The calculator does not include employer pension contributions, state pension entitlement, or insurance policies.

Verification

Test case	Assets	Liabilities	Expected net worth
Young professional (negative)	£11,000	£51,500	−£40,500
Mid-career homeowner	£505,000	£282,000	£223,000
Near-retirement	£1,125,000	£50,500	£1,074,500
Default values	£320,000	£235,000	£85,000
Zero everything	£0	£0	£0