Savings
Glossary
Every term used in this calculator, defined plainly.
- Net Worth
- Total assets minus total liabilities. The fundamental measure of personal financial position.→ The main output of the calculator
- Assets
- Everything you own that has monetary value — bank accounts, investments, real estate, vehicles, valuables.
- Liabilities
- Everything you owe — mortgage, car loans, student loans, credit card balances, personal loans.
- Liquid Net Worth
- Net worth that's readily accessible — cash, checking/savings, taxable brokerage accounts. Excludes home equity and retirement accounts (which may have penalties or tax implications for early access).
- Home Equity
- The current market value of your home minus the remaining mortgage balance. Represents your ownership stake in the property.→ Reflected in the home value vs mortgage balance inputs
- Vested Retirement Balance
- The portion of your 401k or similar account that you own outright — relevant when you have employer matching that hasn't fully vested yet. Use your vested balance for net worth calculation.
Ready to calculate?
Put these terms to work.