Net worth calculator

Written by Vincent Roy · Last reviewed May 22, 2026 · Sourced from IRS Rev. Proc. 2025-32. Estimates only — not personalized tax advice. See disclaimer.

Net worth math, plain English.

Net worth = everything you own minus everything you owe. The calculator splits this into 8 asset categories and 8 liability categories.

Why the self-employed version is different. A traditional net-worth calculator misses three freelancer-specific realities:

1. Business equity — the value of your business itself (client roster, equipment, A/R) is real net worth, but it's also concentration risk. If your business equity is >40% of total net worth, you're financially fragile.
2. Outstanding tax liability — many freelancers carry implicit IRS debt between estimated payment dates. That's a real liability, not "cash you have".
3. Liquid net worth matters more than total. If $300k of your $400k net worth is your house, you can't pay a hospital bill with it. The calculator computes liquid net worth = (cash + investments) − (non-mortgage debt).

Concentration risk thresholds: under 20% is healthy, 20–40% is acceptable, 40–60% is fragile, over 60% is a single-point-of-failure.

How to value the messy categories.

• Home value — use Zillow Zestimate, Redfin estimate, or your last appraisal. Round down by 5% to account for selling costs you'd actually pay.
• Vehicles — KBB private-party value, not dealer trade-in. Cars depreciate ~15% per year; don't use original purchase price.
• Business equity — for service businesses, use 1× annual revenue as a rough ceiling. For product businesses with assets, count equipment + inventory + accounts receivable. Be conservative.
• Retirement accounts — use balance as of today. Don't discount for future taxes; that's a separate planning step.
• Crypto — current price × holdings. Volatile; consider tracking with and without it.
• Tax liability — for the current quarter, this is roughly 25–30% of your business income since your last quarterly payment. Pair with the quarterly tax calculator.

Track net worth quarterly, not monthly. Monthly is too noisy. Quarterly gives you four data points per year — enough to see direction without drowning in volatility.

More freelancer math.