What Net Worth Means
Net worth is calculated by subtracting your total liabilities from your total assets. Assets include cash, investments, and property. Liabilities include all outstanding debts you owe.
Do You Include Personal Debt in Your Net Worth
Yes, personal debt is included in net worth. Mortgages, student loans, auto loans, and credit card balances all count as liabilities. They reduce your overall net worth.
How Debt Affects Your Financial Picture
Including debt gives a more accurate view of your financial position. A high debt load can make your net worth low or even negative. Tracking liabilities helps you measure real progress. For more detail, see the Investopedia definition of net worth.
