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Summary
Net worth is the simplest measure of financial health: the total value of everything you own (assets) minus everything you owe (liabilities). A positive net worth means your assets exceed your debts; a negative net worth means you owe more than you own — common among young adults with student loans.
How it works
Net worth is a snapshot at a point in time. It changes as asset values rise or fall and as debts are repaid or incurred. The calculation itself is straightforward — the value comes from accurately categorising and totalling each component.
Assets
Assets are anything of monetary value that you own:
- Property — the current market value of any property you own (not what you paid for it)
- Savings — bank accounts, cash ISAs, premium bonds, cash holdings
- Investments — stocks and shares ISAs, investment accounts, individual shares, funds
- Pension — the current transfer value of workplace and personal pensions
- Other assets — vehicles, valuables, crypto, business interests
Liabilities
Liabilities are any debts or financial obligations:
- Mortgage — the outstanding balance on any property mortgage
- Student loans — the current balance owed to the Student Loans Company
- Credit cards — outstanding balances on credit and store cards
- Car finance — HP, PCP, or personal loan balances for vehicles
- Other liabilities — personal loans, overdrafts, money owed to family
The formula
Where
Worked example
Mid-career homeowner, age 42
Property value
= £350,000
Savings + Investments + Pension + Other
= £155,000
Total assets
= £505,000
Total liabilities
= £282,000
Result
Net worth = £505,000 − £282,000 = £223,000
UK median net worth by age
The ONS Wealth and Assets Survey (Round 8, April 2020 – March 2022) provides median household total wealth by age of household reference person:
| Age band | Median household total wealth |
|---|---|
| 16–24 | £15,200 |
| 25–34 | £109,800 |
| 35–44 | £209,600 |
| 45–54 | £301,900 |
| 55–64 | £496,500 |
| 65–74 | £502,500 |
| 75+ | £373,100 |
Wealth peaks at ages 65–74 (£502,500) — 33 times higher than the youngest households — before declining as pensions are drawn down. The overall median household wealth in Great Britain is £293,700.
Note: ONS suspended accreditation for Round 8 data in June 2025 due to quality concerns at granular levels. The aggregate age-band medians remain the best available UK data.
Inputs explained
- Property value — current market value, not purchase price. Use recent comparable sales or an online valuation tool.
- Savings — all cash-equivalent holdings: bank accounts, cash ISAs, premium bonds.
- Investments — stocks, shares, funds, investment ISAs. Use current portfolio value.
- Pension — the transfer value of defined contribution pensions or CETV of defined benefit pensions.
- Other assets — vehicles (at resale value, not purchase price), valuables, crypto, business equity.
- Mortgage balance — the outstanding amount owed, not the original loan.
- Student loans — current balance from the SLC online portal.
- Credit cards — total outstanding balance across all cards.
- Car finance — the settlement figure, not the original amount financed.
- Other liabilities — personal loans, overdrafts, informal debts.
Outputs explained
- Net worth — total assets minus total liabilities. The headline number.
- Total assets — the sum of all asset categories.
- Total liabilities — the sum of all debt categories.
- Asset/liability split — a visual bar showing the proportion of assets to liabilities.
- Breakdown charts — how assets and liabilities are distributed across categories.
Assumptions & limitations
- Property value is self-reported — the calculator does not adjust for market conditions or location. Use a recent valuation.
- Pension values are approximate — defined benefit pensions are notoriously hard to value. The cash equivalent transfer value (CETV) is one approach but may not reflect the true retirement income value.
- Student loans behave like a tax — UK Plan 2 and Plan 5 student loans are written off after 30/40 years and repayment is income-contingent. Including the full balance as a liability may overstate its impact on financial health.
- Net worth is a snapshot — it says nothing about income, cash flow, or financial security. Someone with £500,000 net worth tied up in an illiquid property and no savings may be less financially resilient than someone with £200,000 in liquid assets.
- The calculator does not include employer pension contributions, state pension entitlement, or insurance policies.
Verification
| Test case | Assets | Liabilities | Expected net worth |
|---|---|---|---|
| Young professional (negative) | £11,000 | £51,500 | −£40,500 |
| Mid-career homeowner | £505,000 | £282,000 | £223,000 |
| Near-retirement | £1,125,000 | £50,500 | £1,074,500 |
| Default values | £320,000 | £235,000 | £85,000 |
| Zero everything | £0 | £0 | £0 |
Sources
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