What Is Net Worth
Net worth is the difference between your total assets and total liabilities. Assets include cash, investments, and property value, while liabilities include debts such as loans and credit card balances.
Is a House Mortgage Included in Net Worth
Yes, a house mortgage is included in net worth as a liability. While the home itself is an asset, the outstanding mortgage balance reduces your net worth. Your home equity is calculated by subtracting the remaining mortgage balance from the current market value of the property.
How to Calculate Net Worth With a Mortgage
To calculate net worth with a mortgage, list the current market value of your home as an asset and the remaining mortgage balance as a liability. Subtract total liabilities from total assets to determine your net worth. You can use a net worth calculator to track these figures over time.
For more details on how assets and liabilities are reported, see Investopedia.
