How to Calculate Your Net Worth

One of the most important financial planning steps you can do each year is to complete a Net Worth Statement. Your Net Worth is simply a snapshot of the difference between what you own (your assets) versus what you owe (your liabilities).

A good time to update your Net Worth is at the start of each year, once you have your annual statements.

Below is a sample statement.

I downloaded this sample from Microsoft’s website for templates and made a few changes. The primary change was to identify “investible assets”. These include items such as RRSPs and non-registered accounts. In this example, investible assets total to $235,000. This is one of your important numbers as it represents a source of funding for future goals such as your retirement.

Click here to Download an excel version of this Net Worth Calculator

Lastly, store this document in a reference file folder called “Net Worth”. Each year, you can refer back to it and see the changes. It’s also a valuable document to take to your annual review with your financial planner to update your financial status.