You may think the term "net worth" only applies to celebrities and CEOs, but it's something we all have — and we all should know what it is.
Your net worth is determined by subtracting your debts from the total value of your assets. It's essentially a snapshot of where you stand financially.
The average net worth of Americans
Here's a breakdown of both the median and average net worth of Americans by age, according to the Federal Reserve's Survey of Consumer Finances from October 2023.
The average figures are skewed by the most affluent households, so the median net worth is a better indicator of where Americans of every age really stand.
Household net worth by age
| Age of head of family | Median net worth | Average net worth |
|---|---|---|
| Less than 35 | $39,000 | $183,500 |
| 35-44 | $135,600 | $549,600 |
| 45-54 | $247,200 | $975,800 |
| 55-64 | $364,500 | $1,566,900 |
| 65-74 | $409,900 | $1,794,600 |
| 75+ | $335,600 | $1,624,100 |
Source: The Federal Reserve Survey of Consumer Finances, published October 2023
How to calculate your net worth
In simple terms, your net worth is the difference between what you own and what you owe. You can calculate your net worth by adding up your assets and then subtracting your liabilities.
Assets can include anything you own that has value, including:
- Cash
- Investments
- 401(k) and other retirement accounts
- Property
- Car
- Art and collectibles
A life insurance policy can be considered an asset if it has cash value that you can access while you're alive.
Liabilities include any debts, such as:
- Credit card bills
- Student loans
- Mortgages
- Auto loans
An easy way to increase your net worth is with a high-yield savings account — the top ones offer annual percentage yields above 5% these days. UFB Portfolio Savings is one of our top picks for HYSAs.
UFB Portfolio Savings
UFB Portfolio Savings is offered by Axos Bank ® , a Member FDIC.
Annual Percentage Yield (APY)
Up to 5.15%APY on any savings balance; add UFB Freedom Checking and meet checking account qualifications to get an additional up to0.20%APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Portfolio Savings review.
The online-only institution offers a healthy yield, no minimum deposit requirements or monthly fees and a nationwide network of free ATMs.
How to track your net worth
As you earn more, grow investments and borrow and pay back loans, it's normal for your net worth to fluctuate. Checking your number as part of your financial routine will help clarify your priorities: Are you in a good position to buy a new car? Is now the right time to take out a mortgage?
The Empower app makes tracking your net worth easy, by linking your checking, savings and money market accounts, investments, retirement funds, credit card bills and personal loans. Empower even has a net worth calculator to help you see where you stand.
Empower
On Empower's secure site
Cost
App is free, but users have option to add investment management services for 0.89% of their money (for accounts under $1 million)
Standout features
A budgeting app and investment tool that tracks both your spending and your wealth
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Data encryption, fraud protection and strong user authentication
Terms apply.
FAQs
How do you calculate your net worth?
To calculate your net worth, take all your major assets — including savings, property, automobiles, and 401(k) funds— and subtract your outstanding debts — including your mortgage, student loans and credit card bills.
Does net worth include your home?
The fair market value of your home would be considered an asset and part of your net worth. If you have a mortgage, however, that would be a liability and should be deducted from your assets.
How can I increase my net worth?
To increase your net worth, you can either increase the value of your assets or reduce your liabilities (or both). Contributing more to a 401 (k) or paying off credit card bills are two easy ways to boost your net worth.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
