What is net worth — and how do you work it out?
Net worth is one subtraction: everything you own (assets) minus everything you owe (liabilities).
It is the most honest number in personal finance — income says what flows in; net worth says what stayed.
The two lists
Own, minus owe. The whole calculation is two honest lists:
- Assets: your home and any property (at what they would sell for, not what you paid), retirement funds, investments, savings and cash, a business interest, vehicles
- Liabilities: the outstanding bond balance, vehicle finance, personal loans, credit cards, store accounts — the balances, not the monthly payments
What the number means (and what it doesn't)
A negative net worth early on is not failure — it is usually just a bond and a degree doing their work before they pay off. And a big positive number with everything locked in one asset carries its own story.
One more thing it is not: your worth. It is a measurement of a structure, not of a person.
Why the trend beats the snapshot
A single net worth figure is a photograph; the trend is the film. Measured once or twice a year, the direction tells you more than the level ever will.
It is also the cleanest lens on the rich-versus-wealthy question: a rising net worth on a modest income is wealth being built. A flat one on a big income is richness being spent.
The South African wrinkles
- Retirement funds count, even though most of the money is locked — it is still yours
- Property counts net of the bond: a R2 million home with R1.5 million owing adds R500,000, not R2 million
- Married in community of property? The estate is joint — net worth is calculated for the household, not per person
Try it with your own numbers
Add what you own, subtract what you owe — the calculator does the arithmetic and shows where the number lands. Inputs stay on your device.
Your numbers stay on your device — nothing you type here is sent or stored. This is a generic guideline calculation, not advice. For advice, speak to a vetted, FSCA-registered planner.
Terms used on this page
- assets
- What you own that has value — property, savings, investments, retirement funds, a business.
- liabilities
- What you owe — the bond balance, vehicle finance, loans, credit cards, store accounts.
Reviewed July 2026