Net Worth Calculator: What It Is and How to Track It

Net worth is your financial snapshot: what you own minus what you owe. It's the single number that shows whether you're getting richer or poorer, regardless of how much you earn. Two people can earn the same salary and have wildly different net worths — because what you do with income matters far more than the income itself.

For FIRE planning, net worth is your scoreboard. Your FIRE number is your goal. Net worth is how you track progress toward it.

The Formula

What Counts as an Asset?

An asset is anything you own that has a current market value. For FIRE purposes, break assets into two buckets: investable assets (which generate income in retirement) and use assets (which don't).

Investable assets — these fund your retirement

• 401(k), 403(b), 457 accounts — use the current market value
• Traditional and Roth IRAs — current balance
• Taxable brokerage accounts — current market value
• Cash and savings accounts — full balance
• CDs and money market accounts — current balance
• HSA (Health Savings Account) — this is triple-tax advantaged and absolutely an investable asset
• Rental property equity — current market value minus the mortgage balance

Use assets — count for net worth, not for FIRE number

• Primary home equity — market value minus mortgage (more on the debate below)
• Cars and vehicles — use Kelley Blue Book value
• Jewelry, art, collectibles — market value if you'd actually sell them

What Counts as a Liability?

A liability is any debt you owe:

• Mortgage balance — remaining principal (not total payments)
• Car loans — remaining balance
• Student loans — total remaining balance across all loans
• Credit card balances — anything carried month to month
• Personal loans — remaining balance
• Medical debt, tax debt, HELOC balances

A Real Calculation: Meet the Johnsons

Let's build a full net worth statement for a real-world example. Marcus and Keisha Johnson, both 38, own a home in Denver and have been saving for retirement since their late 20s.

Assets

Asset	Value
Primary home (market value)	$400,000
Marcus's 401(k)	$180,000
Keisha's Roth IRA	$45,000
Joint taxable brokerage	$60,000
Savings & checking accounts	$15,000
Two cars (KBB value)	$28,000
Total Assets	$728,000

Liabilities

Liability	Balance
Mortgage remaining balance	$220,000
Car loan	$12,000
Keisha's student loans	$35,000
Total Liabilities	$267,000

Net Worth = $728,000 − $267,000 = $461,000

But here's the important distinction for FIRE planning: the Johnsons' investable net worth (what can actually fund retirement) is $300,000 ($180k + $45k + $60k + $15k). The home equity is real wealth, but it doesn't pay monthly expenses unless they sell or take a reverse mortgage.

The Primary Home Debate

Should you include your home equity in your FIRE number calculation? The FIRE community is split, but the practical answer is: count it in total net worth, but don't count on it for your withdrawal strategy.

Home equity is illiquid. You can't sell 10% of your house to pay next month's grocery bill. You'd need to sell the home, downsize, move to a lower cost-of-living area, or take out a reverse mortgage. All of these are real strategies, but they involve significant lifestyle changes. For a clean FIRE calculation, focus on your investable portfolio and treat home equity as an emergency backstop.

Net Worth Milestones for FIRE Progress

Hitting certain investable net worth milestones is genuinely meaningful. Here's how the FIRE community typically thinks about them:

Milestone	What It Means
$0 → positive	Debt-free (excluding mortgage) — first real win
$100,000	Compound interest starts doing serious work
25% of FIRE number	Coast FIRE becomes achievable within ~10 years
50% of FIRE number	Barista FIRE is within reach in 5–7 years
Coast FIRE number	Can stop contributing; market alone reaches FIRE number by target age
100% of FIRE number	Financially independent — work is optional

Net Worth by Age: Where Do You Stand?

Context matters. Here are approximate investable net worth benchmarks for FIRE-track individuals (not the general population, who are significantly behind):

Age	Solid FIRE Progress	Ahead of Schedule
25	$25,000–$50,000	$75,000+
30	$75,000–$150,000	$200,000+
35	$150,000–$300,000	$400,000+
40	$300,000–$500,000	$700,000+
45	$500,000–$800,000	$1,000,000+
50	$800,000–$1,200,000	$1,500,000+

If you're below these ranges, don't panic — the gap is almost always closeable with a higher savings rate. A 40-year-old with $200,000 who starts saving $3,000/month at 7% returns can still hit $1.5M by 55. The math is more forgiving than it looks.

How Often Should You Track Net Worth?

The right frequency depends on your personality, but here's what works for most FIRE seekers:

• Monthly: Best for motivation and catching problems early. Takes 5 minutes once accounts are set up. Ideal during the accumulation phase.
• Quarterly: Reduces the emotional noise of short-term market swings. Better for people who get anxious watching daily fluctuations.
• Annually: Too infrequent. You can drift significantly in 12 months without noticing.

Monthly tracking with a quarterly "big picture" review is the optimal approach for most people. Check the numbers monthly, but zoom out every three months to assess whether your trajectory has changed.

From Net Worth to FIRE Number

Once you know your investable net worth, the distance to FIRE is simple math. Using the Johnsons' investable net worth of $300,000 (not their $461,000 total net worth, which includes illiquid home equity) against a $1,500,000 FIRE number, they need $1,200,000 more. At a 7% real return saving $2,500/month, that's roughly 14 years away.

That's exactly what MyFIRE's planner calculates — your current net worth, your FIRE number, and the exact month you're projected to cross the finish line, with Monte Carlo simulation to show you the range of outcomes.