Calculate Your Net Worth Using Our Net Worth Calculator India

net worth calculator india

Net worth is a man-made concept that is used to quantify the ‘worth’ of an entity. This concept can be used to calculate the value of a company, a person, a sector and in some cases, even a country. Use this net worth calculator India to determine your net worth!

What Does Net Worth In India Mean?

Net worth meaning: Net worth is a man-made concept that is used to quantify the ‘worth’ of an entity. This concept can be used to calculate the value of a company, a person, a sector and in some cases, even a country.

In a nutshell, the networth of any entity is the sum of its assets minus the sum of its liabilities. As is evident, net worth calculator can be used to determine whether this value is positive or negative in value. 

A positive net worth signifies that the entity has more assets than liabilities and a negative net worth means that the entity’s liabilities outnumber its assets. This essentially means that the entity is in debt.

What Is A Net Worth Calculator Used For?

A person or an entity’s net worth is typically used to measure its financial health. It gives a snapshot of an entity’s current financial position. A non-negative and increasing networth signifies healthy finances whereas e a decreasing or negative net worth shows that there’s a cause of concern. 

As it is an indication of deteriorating financial health.

The best and fastest way to increase one’s net worth is to:

  1. Remove liabilities while keeping assets stable
  2. Increase assets while keeping liabilities stable
  3. Increasing assets while reducing liabilities

In the world of business, a company’s balance sheet is also known as the company’s net worth statement as it collates the company’s assets and liabilities in one place.

Did you know that individuals with a very high net worth are called HNWIs? (High Net Worth Individuals) Try using our net worth formula for individual above to check if you’re one of them!

What Are Assets & Liabilities?

In its simplest form, an asset adds value while liabilities take away value. In other words, assets put money in your pocket whereas liabilities take money away. These need to be added in the first column of our net worth calculator.

Examples of assets include:

  • Real estate
  • Machinery
  • Office equipment
  • Inventory
  • Cash
  • Investments

Example of liabilities include:

  • Personal loans
  • Home loans
  • Taxes owed
  • Money owed to suppliers / accounts payable

What Are Liquid and Illiquid Assets and Liabilities?

The liquidity of any assets quantifies the ease with which it can be converted to hard cash. The asset with the highest liquidity is cash itself as it can be immediately used to pay off a liability.

An example of a low liquidity-asset is a factory. As the process of selling the factory and converting it to cash would likely be a very slow process.

A majority of liquid assets are called current assets. A current asset is any asset that can be converted into cash in less than a year. Examples of current assets include cash, securities, material inventory and accounts receivable. In some cases, these assets may also be generating revenue for your company or returns for your personal life.

Assets with low liquidity are grouped into the category of fixed assets.

What Does Your Personal Net Worth Tell You About Your Finances?

Technically, your individual net worth is the total cash you would get if you were to sell of all your assets and pay off all your liabilities. If this number is negative, then you essentially owe more than you own!

This is definitely not an ideal situation to be in, but it’s very common. Especially for people who are just starting out their careers.

When it comes to your financial wellness, you shouldn’t be trying to reach a magical net worth number. However, you should definitely use this tool to track your financial health and check whether it’s improving over time or the opposite.

How To Calculate Your Net Worth

Simply enter the value of all your assets and liabilities in the tool above and watch the magic happen as it runs your data through our net worth equation!

Here’s how it works, and how you can do it yourself if you want to:

Calculating your net worth is a very basic process but it requires you to devote some time and gather all the information about your current assets and liabilities. For eg, if you own a Hyundai i20 that you purchased 4 years ago, you need to factor in the current value of the vehicle and not the purchase price.

This is because the actual definition of net worth is the amount of money you’d have in hand if you sold all your assets and paid off all liabilities today.

I admit that fetching and organizing this data can be a bit of a chore, especially if you’re in you’re older than 30. 

Here’s how to begin:

  1. List your most prominent assets first. For eg, this would include the current market value of your home and any other real estate that you own. This would also include any vehicles that you may own. Ensure that you use the current market value and not the purchase price in all cases.
  2. Next, collate your latest statement for your liquid assets. These include your savings accounts, current accounts, retirement accounts, investment accounts etc
  3. Next, you can list any other items that may be of considerable value. Examples include gold, jewelry, art, heirlooms and more. Try to cover everything that has a current market value of more than Rs. 35,000.
  4. Finally, list down all these assets and add them together. The number that you arrive at represents your total assets.
  5. Now, we’ll try to calculate liabilities. Start with all outstanding debts that you currently have such as your car loans, home loans, and more. List down all these debts along with their outstanding amounts. Note that if you’ve paid off 50% of a 1 crore loan, your liability on that loan is only of Rs. 50 lakh + interest and not the entire amount.
  6. Next, make a list of all your personal liabilities such as an outstanding credit card debt, student loans, money you owe to your friends and more.
  7. Lastly, add up all these numbers to arrive at your total liabilities.
  8. To calculate your current personal net worth, simply subtract your total liabilities from your total assets. 

In most cases, it doesn’t matter how large or small this number is. Even if the number is negative, it’s okay. You should use your net worth only as a benchmark to compare you progress in the future. The idea is to try and increase this number over time. Note that most of us leave college with a negative net worth due to student loans.

It’s best to repeat this entire process every year and check how you’ve fared compared to the last year. Using this, you can determine whether you’re making progress or not.

How To Increase Your Net Worth

So, you sat down and collated all your assets and liabilities. You entered everything into the calculator above and arrived at a number much below than what you expected!?

It’s understandable if you weren’t pleasantly surprised with this number. Don’t be scared! The great thing is, this is just a starting point and you can easily increase this number year on year using the following tips.

1. Keep Your Liabilities In Check

Start off by taking a detailed look at all your outstanding liabilities. Search for liabilities that you can eliminate. If you couldn’t find any such liability, search for ones that you can reduce immediately. Good examples include credit card debt that usually has a very high interest rate if not paid before the due date.

You can also consider refinancing your loans with high interests to fast-track the debt-payoff. When you refinance to a lower interest rate, you can send more of your payment towards the principal you owe each month, allowing you to get rid of liabilities faster!

Another method is to consider changing your approach with your current payment plan. For eg, if you’re currently making one payment towards your debt every month, consider shifting to a weekly or bi weekly payment to chip away at the principal faster. This is a smart way to reduce the total amount of interest you have to pay.

2. Review All Your Current Assets

A lot of us are guilty of not being aware of how much we actually own, or how the values of our assets have changed over time! Not to worry, you can always search for estimated figures using market data. Most importantly, try not to leave any assets out of your calculations. A quick look into the most common types of assets:

  • Primary Home: Your home equity simply means how much your home is currently worth minus how much you currently owe to the bank in your home loan. The higher your home equity, the higher your net worth can be.
  • Any other real estate: These assets are typically paid off with cash which is why it is super important to include them! Note that you should account for the value of your rental property as opposed to the annual rent you’re receiving from it.
  • Investments: This category includes anything and everything among stocks, government bonds, mutual fund schemes and even tax-deferred retirement accounts, NPS, PPF etc. Don’t forget to subtract the taxes that you’ll owe on the returns if any!
  • Miscellaneous items of value: If you’re an avid collector of paintings, jewelry, wines, classic cars, try to determine their current value and include them in your list of assets.

3. Cut Down On Expenses

This step is pretty basic. The more money you save, the faster you can cut down on your liabilities and the faster you can increase your net worth. If you don’t have any liabilities, you can still save money and acquire more cash-generating assets to increase your net worth in our net worth calculator.

To do this, go through your current expenses and see where you can save money. You can also try and set up a strict budget and then follow it month on month. Remember, even a few rupees here and there add up to a sizeable amount in the long term.


It’s important to note that whatever value you arrive at using our net worth calculator, you should use it only as a benchmark for your future growth!

2 thoughts on “Calculate Your Net Worth Using Our Net Worth Calculator India

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