Net worth is assets minus liabilities. Or, you can think of net worth as everything you own less all that you owe. Find your net worth by using our net worth calculator. 

How do you calculate net worth?

Calculating your net worth requires you to take an inventory of what you own, as well as your outstanding debt. And when we say own, we include assets that you may still be paying for, such as a car or a house.

For example, if you have a mortgage on a house with a market value of $200,000 and the balance on your loan is $150,000, you can add $50,000 to your net worth.

Basically, the formula is:

ASSETS - LIABILITIES = NET WORTH

And by the way, your income is not included in a net worth calculation. A person can bring home a big paycheck but have a low net worth if they spend most of their money. On the other hand, even people with modest incomes can accumulate significant wealth and a high net worth if they buy appreciating assets and are prudent savers.

The mortgage calculator lets you click "Compare common loan types" to view a comparison of different loan terms. Click "Amortization" to see how the principal balance, principal paid (equity) and total interest paid change year by year. On mobile devices, scroll down to see "Amortization."

Financial experts suggest saving three to six months' worth of expenses.

An emergency fund cushions against surprise financial setbacks. Our emergency fund calculator can help you pinpoint your end savings goal. 

How much to save in your emergency fund

Sudden car repairs, medical emergencies or job loss can all lead to unexpected debt if you're not prepared. How much should you save to safeguard your finances? It's difficult to predict how much these or other emergencies could cost — but personal finance experts say three to six months' worth of expenses is a good goal. If that seems too steep, saving even $500 will help you avoid going into debt to finance a small car repair or medical bill.

Buying a home isn't always a good financial move. Renting isn't necessarily a waste of money. Our simple rent vs buy calculator can help you decide whether it makes more sense for you to rent or buy a home.

The rent vs buy debate can get exceptionally heated. For some, renting for a second longer than you have to is akin to setting fire to your hard-earned cash. Others see home ownership not as the fulfillment of the American Dream but as a financial prison, limiting your mobility and liquidity, and sucking up money for interest, repairs, and taxes.

Neither of these views is entirely correct.

How is this tool different from other resources out there?

While other resources provide basic cost comparisons, NerdWallet’s cost of living calculator and accompanying city life tool go one step further by offering information on schools, quality of life and demographics, giving users a one-stop shop to explore new cities.