Net Worth Calculator

Ideal Net Worth

Net Worth

Net worth is a financial metric that measures the total value of an individual's or a company's assets, including cash and cash equivalents, investments, real estate, and personal property, minus the total value of their liabilities. It is a way to measure the financial health of an individual or a company.

For an individual, net worth can be used as a way to measure their overall financial health and as a benchmark for their retirement planning.

What is the ideal net worth for my age?

This is a common question for those who are investing, and there are many ways to answer that. Consider the formula below that is often used by many financial advisors, which takes into account your age and your standard of living.

  • Ideal Net Worth = Monthly Expenses x Age x 12 x (10% ~ 15%)

For instance, if you are 21-year-old with a monthly expense of $1,500.00, applying this formula we would have:

  • Ideal Net Worth = 1,500.00 x 22 x 12 x (10% ~ 15%)
  • Ideal Net Worth = $37,800.00 ~ $56,700.00

In summary, for a 21-year-old person who has a monthly expense of $1,500.00, the ideal net worth is between $37,800.00 and $56,700.00.

We know it is difficult for people on their early 20's to already have this much in net worth; people on this age are usually studying or starting their professional life, but this formula is good start in this regard.

Examples for $3,000.00 monthly expenses

Age Ideal Net Worth
20 years old Between $72,000.00 and $108,000.00
25 years old Between $90,000.00 and $135,000.00
30 years old Between $108,000.00 and $162,000.00
35 years old Between $126,000.00 and $189,000.00
40 years old Between $144,000.00 and $216,000.00
45 years old Between $162,000.00 and $243,000.00
50 years old Between $180,000.00 and $270,000.00

For more simulations, feel free to use our calculator above.