Quick reference
What net worth measures and why to track it
Net worth captures total financial position at a point in time. Unlike income (a flow) or savings rate (a ratio), net worth is a stock — the accumulated result of all past financial decisions. Two people with the same income can have dramatically different net worths depending on spending, saving, and debt behaviour over years.
Tracking net worth monthly creates accountability. Every month, the number either goes up or down. If it goes down three months in a row despite income being stable, something is wrong — and the tracking makes that visible immediately rather than years later when the pattern is harder to reverse.
Net worth is the correct measure of financial progress toward independence. The financial freedom number (25 times annual expenses) is a net worth target. Every investment return, debt repayment, and savings contribution moves the net worth figure toward or away from that target.
The calculation requires honesty about both sides — assets and liabilities. Many people are comfortable listing assets (they feel good) but resist fully tallying liabilities (they feel bad). An accurate net worth statement requires complete disclosure of all debt: mortgages, car loans, student loans, personal loans, credit card balances, family debts, and any other obligations.
Net worth formula
What to include — assets and liabilities
Assets to include: bank accounts (current and savings), investment accounts (stocks, ETFs, bonds), pension fund value, property at current market value, vehicles at current market value (not purchase price), business equity if self-employed, and any other assets with realisable value.
Assets that are sometimes included but treated with caution: collectibles and jewellery (include only if you have a realistic market value and they are genuinely liquid), future inheritance (do not include — it is not yours yet), and expected pension income (include the current fund value, not a capitalised projection of future payments).
Liabilities to include: mortgage outstanding balance, car loan balance, personal loan balance, credit card balances (the full outstanding balance, not the minimum), student loans, family loans, overdrafts, and any other debt with a legal obligation to repay.
For property: use the estimated current market value, not the purchase price or mortgage balance. The net equity (value minus mortgage) is what matters. If the property is worth 350.000 and the mortgage balance is 220.000, include 350.000 as the asset and 220.000 as the liability — which nets to 130.000 of equity. Or simply include the net equity of 130.000 directly in the asset column.
For pensions: include the current fund value shown on pension statements for defined contribution pensions. For defined benefit (final salary) pensions, the calculation is more complex — some people use a multiplier (20x to 25x the annual pension amount) to estimate the capital equivalent.
Worked examples
Total assets: 8.000 + 22.000 + 45.000 + 38.000 + 320.000 + 12.000 = 445.000. Total liabilities: 218.000 + 7.500 + 2.200 = 227.700. Net worth: 445.000 - 227.700 = 217.300. If annual expenses are 40.000, the FI number is 40.000 x 25 = 1.000.000. Current investable net worth (excluding property equity and car): 45.000 + 38.000 + 22.000 + 8.000 = 113.000. Gap to FI: 887.000.
Opening 150.000 + savings 18.000 + investment returns 7.910 + mortgage principal reduction 6.200 + property appreciation 14.000 - car depreciation 1.500 = 194.610. Of the 44.610 growth: 18.000 (40%) came from new savings, 7.910 (18%) from investment returns, 6.200 (14%) from mortgage paydown (forced saving), and 14.000 (31%) from property appreciation minus car depreciation. This breakdown shows where growth is coming from and where to focus effort.
Net Worth Calculator
Enter your assets and liabilities to calculate your net worth and track your progress toward financial independence.
Net worth milestones by age — Netherlands context
| Age | Median NL net worth (approx) | FI-path target (40k expenses) | Notes |
|---|---|---|---|
| 25 | 5.000 to 20.000 | 50.000 | Building emergency fund, early investing |
| 30 | 30.000 to 80.000 | 150.000 | Career growing, mortgage possible |
| 35 | 80.000 to 200.000 | 300.000 | Equity building, pension accumulating |
| 40 | 150.000 to 400.000 | 500.000 | Halfway milestone |
| 45 | 250.000 to 600.000 | 700.000 | Compounding accelerating |
| 50 | 400.000 to 900.000 | 900.000 | FI approaching for high savers |
Common mistakes when tracking net worth
Methodology
Net worth calculated as total assets at current market value minus total liabilities at outstanding balance. Property valued at estimated current market value (not purchase price). Pension valued at current fund balance for defined contribution. FI target calculated as 25 times annual expenses (4% withdrawal rate). Netherlands median net worth figures approximate from CBS (Centraal Bureau voor de Statistiek) household wealth data.
Net worth milestones by age are illustrative benchmarks, not targets. Individual circumstances — inheritance, property ownership, high-cost cities, family status — create enormous variation. The relevant benchmark is your own FI number (25x annual expenses), not a comparison to peer averages.
Calculate your net worth
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Frequently asked questions
Formula based on standard mathematical and financial methods. Results are for informational purposes. Last reviewed May 2026. Version 1.