The short answer
- Net worth = total assets − total debts.
- The median American family had a net worth of $192,900 in 2022, according to the Federal Reserve. The mean was $1,063,700.
- The median rises with age, from $39,000 for families headed by someone under 35 to $409,900 at 65 to 74.
- Your trend over time matters more than how you compare with anyone else.
What net worth is
Your net worth is what would be left if you sold everything you own and paid off every debt. It is a snapshot of your balance sheet on one day. Income tells you how much flows in each year; net worth tells you how much you have kept. A high earner who spends everything can have a lower net worth than a modest earner who has saved steadily for decades.
A worked example
- Cash $15,000 + retirement $90,000 + investments $20,000 + home $400,000 + car $20,000$545,000
- Mortgage $300,000 + auto $15,000 + student $25,000 + cards $5,000−$345,000
- Debt-to-asset ratio ($345,000 ÷ $545,000)63%
- Median for families aged 35 to 44 (2022)$135,600
Half of this person’s net worth is home equity ($100,000). Without the home and mortgage, net worth is also $100,000, and their liquid net worth (cash and investments less non-mortgage debts) is −$10,000, because the car, student and card debts are larger than their cash and investments.
Valuing your assets
- Cash: checking, savings, money market accounts and CDs at today’s balance.
- Retirement accounts: 401(k), 403(b), IRAs and HSAs at today’s balance. Unvested employer contributions don’t count yet.
- Investments: brokerage accounts at market value, plus 529 plans if you count them as yours.
- Home and other property: what it would sell for now. Recent sales of similar homes nearby are a better guide than online estimates.
- Vehicles: the private-party value, which falls every year. A new car can lose a fifth or more of its value in the first year.
- Other assets: a business stake, cash-value life insurance or money owed to you. Leave out furniture, clothes and electronics, which sell for little.
Be conservative
When in doubt, use a lower value. A net worth built on optimistic home and car prices can look healthy right up until you need to sell.
Counting your debts
Include every balance you owe today, not the monthly payment: the mortgage and any home equity loan or HELOC, auto loans, federal and private student loans, credit cards (even if you pay in full each month), personal loans, medical bills, buy now pay later plans, 401(k) loans and taxes due. Our debt payoff calculator can then show the fastest way to clear the non-mortgage debts.
Net worth by age
| Age | Median | Mean |
|---|---|---|
| Under 35 | $39,000 | $183,500 |
| 35 to 44 | $135,600 | $549,600 |
| 45 to 54 | $247,200 | $975,800 |
| 55 to 64 | $364,500 | $1,566,900 |
| 65 to 74 | $409,900 | $1,794,600 |
| 75 or older | $335,600 | $1,624,100 |
| All families | $192,900 | $1,063,700 |
Net worth typically climbs through working life as mortgages are paid down and retirement savings grow, peaks around 65 to 74, then dips as retirees draw on their savings.
Median or mean?
The median is the family in the middle: half have more, half less. The mean is the total divided by the number of families. For wealth the two are far apart, because a small number of very rich families pull the mean up. In 2022 the mean for all families, $1,063,700, was more than five times the median of $192,900. The median is the better guide to what a typical family has, which is why the calculator compares you with it.
About the Fed's survey
The Survey of Consumer Finances is run by the Federal Reserve Board every three years. It interviews several thousand families in detail about their assets, debts and income, and oversamples wealthy families so the top of the distribution is measured well. The 2022 results, published in October 2023, are the latest; results from the 2025 survey are expected in late 2026.
Three things to keep in mind when comparing: the figures are for families (a couple counts once, with their combined wealth), they are grouped by the age of the family head, and they are in 2022 dollars. Prices have risen since, and so have stock and home prices, so today’s medians are likely somewhat higher. Between 2019 and 2022 the median rose 37% after inflation, and for families under 35 it more than doubled, from $16,100 to $39,000 in 2022 dollars.
Negative net worth when you're young
Many people start working life with a negative net worth, mostly because of student loans. Consider a 28-year-old with $8,000 of cash, a $25,000 401(k) and a $15,000 car, against a $12,000 car loan, $30,000 of student loans and $3,000 on a card. Assets are $48,000, debts $45,000, and net worth is $3,000, or 0.08 times the median for under-35s.
That isn’t a sign of failure. A degree that raises your earnings is an investment the balance sheet can’t see. What matters is the direction: paying down debt and saving in a 401(k) moves the number up every month. Our student loan calculator shows how quickly extra payments clear a loan.
The debt-to-asset ratio
The debt-to-asset ratio divides total debts by total assets. It shows how much of what you own is really financed by lenders. In the worked example it is 63%.
| Ratio | What it usually means |
|---|---|
| Under 30% | Low debt: typical of later life or after paying off a mortgage |
| 30% to 50% | Moderate: common mid-career with a mortgage |
| 50% to 80% | High: common with a new mortgage or large student loans |
| Over 80% | Very high: little cushion if asset values fall |
| Over 100% | Negative net worth: debts exceed assets |
It is different from the debt-to-income ratio lenders use for a mortgage, which compares monthly debt payments with monthly income. Our debt-to-income calculator works that one out.
Your home and net worth
For most American families the home is the largest asset, and home equity is a big share of net worth. The calculator shows your net worth with and without it, because you can’t spend your home without selling it, borrowing against it or downsizing, and selling costs (often 6% to 10% of the price with agent fees, closing costs and moving) would take a slice. A homeowner’s net worth also rises and falls with local prices they don’t control.
Liquid net worth
Liquid net worth counts only cash and taxable investments, less non-mortgage debts. It is the money you could reach in weeks rather than months or years, and the part that protects you in a crisis. A large net worth made almost entirely of home equity and retirement accounts can still leave you short of cash. An emergency fund is the first piece of liquid net worth to build.
Retirement accounts and tax
A traditional 401(k) or IRA balance isn’t all yours: income tax is due when you withdraw it. $100,000 in a traditional 401(k) might be worth $78,000 to $88,000 after tax, depending on your bracket in retirement, while $100,000 in a Roth IRA is worth the full amount if the rules are met. Most net worth figures, including the Fed’s, use the full pre-tax balance, and so does the calculator, but it is worth remembering when you compare a Roth saver with a traditional saver.
Rules of thumb
- From
- The Millionaire Next Door (1996)
- Age 40, $100,000 income
- $400,000
- Best for
- Mid-career earners
- Common guide
- 1× salary by 30, 3× by 40, 6× by 50
- Counts
- Retirement savings only
- Best for
- Checking retirement progress
Both are rough. The first is hard on young people with high incomes and no time to save yet; the second ignores pensions and Social Security. Use them as prompts, not grades. Our retirement calculator gives a fuller answer for retirement.
How net worth grows
Net worth rises in three ways:
- Saving: every dollar you put aside from income adds a dollar.
- Paying down debt: the principal part of every loan payment adds to net worth, and high-interest debt cleared stops costing you.
- Growth: investments and home values rising. Over time this does the most, which is why early saving matters.
Buying a car or spending on things that lose value lowers net worth, even when it is paid in cash. Our FIRE calculator shows how a high savings rate turns net worth into financial independence.
Tracking it over time
Work out your net worth once or twice a year, on the same date, with the same method. Save the link from the calculator: it keeps your figures in the address, so you can open it next year and update the numbers. A steadily rising line matters more than any one year, because markets will push the number up and down.
Common mistakes
- Using the price you paid for your home or car instead of what it would sell for today.
- Leaving out debts that don’t send a monthly bill, such as a 401(k) loan or money owed to family.
- Counting household items at what they cost.
- Comparing yourself with the mean instead of the median.
- Comparing an individual figure with the survey’s family figures without adjusting for a partner’s wealth.
Couples, families and net worth
Married couples usually work out one household net worth, because most of their assets and debts are shared and the Federal Reserve’s survey counts families the same way. Unmarried partners may prefer to work out two figures and a combined one, especially if they own things separately. Either way, be consistent from year to year.
Money you hold for children, such as a 529 plan, is usually counted as yours if you own the account. Money you expect to inherit isn’t an asset until you receive it, and money you have promised to pay, such as a co-signed loan you may have to cover, is worth noting even if it doesn’t appear as your debt.
Using net worth in planning
Net worth is the starting point for most bigger questions. Lenders look at assets when you apply for a mortgage. Retirement plans start from the savings you already have, and a FIRE plan tracks invested assets against a target. Estate planning starts from what you own and owe. Breaking the figure down, as the calculator does, shows where to focus: building cash if liquid net worth is negative, paying down high-interest debt if the debt-to-asset ratio is high, or investing more if most of your wealth is in your home.
Key numbers
| Item | Figure |
|---|---|
| Median family net worth, 2022 | $192,900 |
| Mean family net worth, 2022 | $1,063,700 |
| Median, family head under 35 | $39,000 |
| Median, 35 to 44 | $135,600 |
| Median, 45 to 54 | $247,200 |
| Median, 55 to 64 | $364,500 |
| Median, 65 to 74 | $409,900 |
| Median, 75 or older | $335,600 |
| Change in the median, 2019 to 2022, after inflation | +37% |
| Next survey (2025) results | Expected late 2026 |