Net Worth Calculator

Net worth = total assets − total liabilities. Add the current value of everything you own, subtract every loan and due you owe, and what is left is your net worth. If you own ₹1 crore of assets and owe ₹40 lakh, your net worth is ₹60 lakh.

Net worth = (cash + EPF/PPF/NPS + investments + gold + property + other assets) − (home loan + other loans + card dues + other debts)

Use today's market value, not what you paid. A flat bought for ₹50 lakh that would sell for ₹80 lakh counts at ₹80 lakh. Mutual funds count at their current value, not the total of your SIPs. For loans, use the principal still outstanding, which your lender's statement shows, not the sum of future EMIs.

Leave out things you can't sell or that lose value fast if you want a cleaner number: furniture, phones, and usually your car. Insurance cover is not an asset either; only a policy's surrender value is.

Illustrative. These are the calculator's default inputs. The household has ₹4 lakh in bank accounts and FDs, ₹18 lakh across EPF, PPF and NPS, ₹22 lakh in mutual funds and stocks, ₹3 lakh of gold and a home worth ₹90 lakh. It owes ₹55 lakh on the home loan, ₹4 lakh on a car loan and ₹50,000 on a credit card.

The headline is about ₹77.5 lakh, but property is about 66% of the assets. Only about ₹24.5 lakh could be reached in a few weeks without selling the home or breaking retirement accounts. That gap between the headline and the usable number is the main thing the calculator is built to show.

Most Indian households hold much of their wealth in the home they live in. That counts in net worth, but you can't pay a hospital bill with a room of your flat, and selling takes months. So the calculator shows two narrower figures.

• Net worth excluding property removes your property and the home loan secured on it. Other loans, such as a car loan or card dues, stay in because you still have to repay them from the remaining assets.
• Liquid net worth also removes EPF, PPF and NPS. That money is yours, but withdrawals are restricted until retirement or limited to specific reasons, so it is not a buffer for this year.

Liquid net worth is not the same as an emergency fund. It includes equity funds and stocks, which can fall 30% just when you need them. Size the cash part separately with the emergency fund calculator.

The debt-to-asset ratio tells you how much of what you own is funded by borrowing. It is usually high in the first years of a home loan and falls as you repay. Watch the direction it moves more than the level.

Once a year is enough for most people, and twice a year if you are paying down debt quickly. Pick a fixed date, such as 1 April or your birthday, and keep the same method each time, especially for property values. Checking monthly mostly tracks the stock market, not your own progress.

Net worth is a snapshot. For a fuller picture of savings rate, insurance and emergency cover, take the free Financial Health Check. To see whether your investments are on track for retirement, use the retirement calculator.

There is no official definition of rich. The closest regulatory marker is SEBI's test for an individual accredited investor, set out in its Alternative Investment Funds regulations. You qualify if you meet any one of these:

• annual income of at least ₹2 crore; or
• net worth of at least ₹7.5 crore, with at least ₹3.75 crore of it in financial assets; or
• annual income of at least ₹1 crore plus net worth of at least ₹5 crore, with at least ₹2.5 crore in financial assets.

Notice that SEBI asks for half the net worth in financial assets, so a ₹7.5 crore net worth that is mostly property doesn't meet the test. Being rich on paper and having enough to stop working are also different questions: the guide to how much money you need to retire in India works through what a given corpus can pay out each month.

Your net worth includes everything, wherever it sits. Put NRE, NRO and FCNR deposits in the cash line and Indian property in the property line. Add bank balances, brokerage accounts, 401(k) or other pensions and property abroad to the foreign assets line, converted to rupees at today's rate. Subtract loans abroad, such as a mortgage or car loan, under liabilities in the same way.

Pick one currency and stick to it. If you earn and spend in dollars, part of any year-on-year change in your rupee net worth is just the exchange rate moving. Using the same rate source each year keeps the comparison fair.