What is Net Worth?


4 Answer(s)


Net worth is equal to Total assets - Total liabilities.

Net worth (sometimes called net or wealth) is the total assets minus total outside liabilities of an individual or a company. Net worth is used when talking about the value of a company or in personal finance for an individual's net economic position. Put another way, net worth is what is owned minus what is owed.

Net worth is also known as book value or shareholders' equity.

Net worth = total assets - total liabilities