Investment Calculators · Canada
Net worth.
Track every asset and liability to land on your total net worth, with an asset-category breakdown and a debt-to-asset ratio reading.
Assets & liabilities
Financial summary
Fill the form and press Calculate.
Why track net worth
Net worth is the cleanest signal of your financial trajectory. Recalculate quarterly. The two levers are growing assets (especially in tax-sheltered accounts) and reducing high-interest debt. A debt-to-asset ratio at or below 30% is healthy; above 60% is a flag to focus on payoff.
TNAADO Inc. · Toronto
One number, and what it is not
Net worth is assets minus liabilities at a single point in time. It is the cleanest measure of financial position and a poor measure of financial health, because it says nothing about liquidity or cash flow. A household with $800,000 of home equity and $2,000 in a chequing account has a strong net worth and a fragile month.
The mistake people make. Valuing assets at what you hope they are worth and liabilities at last year’s balance. Use what an asset would realistically sell for after costs, and include everything owed: mortgage, HELOC balance, car loan, cards, and tax owing on registered accounts. An RRSP is not net worth at face value, because the tax due on withdrawal is a real liability that simply has not been billed yet.
Disclaimer
Educational only. Use realistic current market values for property and vehicles, not original purchase prices.