Business (lease) asking price $239,000, Required $60,000 Liquid and $250,000 net worth. What is net worth?

Question

How do i calculate net worth?

Answer 1

Net worth is the difference between the assets you own and the debt you owe.  Some assets may not count for some purposes, but your assets would be the value of your home, your car, your furniture, your clothes, etc.  Your debt would be your mortgage, your credit card debt, amounts due on cars, boats, furniture, or any other unpaid bills.

Answer 2

Net worth is the sum of all your financial assets minus the sum of all your liabilities.

Add together the value of any cash, stocks, bonds, other securities, interest in other businesses, real estate, etc., that you own.  Then subtract any mortgages, credit card debt, other personal debt, debt attached to any businesses you own, etc.

Note that for some purposes, sometimes people exclude their personal residence and the mortgage attached to the personal residence.

Answer 3

Net worth is all of your assets minus all of your liabilities.

Example.

House is worth $500K and you owe $100K.  You have $25000 in the bank.  You have a credit card with a $5K balance.

Your net worth is $420K.