Future Net Worth Calculator

A free and interactive future net worth calculator to get a net worth projection of what your actual net worth in future over age and time will be. Your future net worth calculation is primarily based on what you are currently worth, your future savings and expected rate of return put through our net worth growth calculator.

How is Future Net Worth Calculated

To learn how to calculate future net worth, you need to understand what your assets and debt are. An asset is anything you own that has monetary value Your debt (also known as liabilities) is anything you owe.

Your future net worth is calculated by subtracting your debt from assets at some time in the future. The formula and definition to calculate future net worth is:

Future Net Worth = Future Assets - Future Debt

A future asset is anything owned at a time in future with monetary value. A future debt (also known as liability) is an obligation or what you owe at that same time in future.

In other words, whatever is left after selling all future assets and paying off personal debt at some time in the future, is your future net worth.

Net Worth Growth Calculation

A future net worth calculator or net worth growth calculator takes into account your asset growth rate, your additional savings and investments, and your debt paydown period as a meaningful future net worth predictor.

The best way to improve your future net worth growth is to either reduce debt while assets stay constant or rise, or increase assets while debt either stays constant or falls.

An increase of future net worth growth calculation - for most - comes through the saving of job income and future appreciation in value of one's home and investments. Many saw a major swing in their current and future net worth with the real estate boom over the past years.

Net Worth Predictor

The formula to help you know what you should be worth and therefore calculate an estimation of your future net worth is:

Suggested Future Net Worth = Future Age x Future Income / 10

If you want to calculate what you should be worth in future at age 35 when your future income is $100,000, then your estimated future net worth would be $350,000.

The net worth predictor formula assumes that your future net worth is commensurate with your age and income. Where you live and costs of living can skew what you should be worth directly and indirectly through your income and ability to accumulate assets, obtain debt and paydown your debt off.

Net Worth Projection

A projected net worth calculator and net worth projection calculator is the same as a future net worth calculator. It will provide a net worth forecast and help project your net worth over time by projecting your assets and debt over the same time.

If you are still wondering what will my net worth be, use the future net worth calculator to see your own net worth projection.

Future Net Worth Example

Consider a couple with assets, including a primary residence valued at $250,000, an investment portfolio with a market value of $100,000, and automobiles and other assets valued at $25,000. Debt includes an outstanding mortgage balance of $100,000 and a car loan of $10,000.

The couple's net worth would therefore be calculated as [$250,000 + $100,000 + $25,000] - [$100,000 + $10,000] = $265,000

Assume that five years later, the couple's financial position changes: the residence value is $225,000, investment portfolio $120,000, savings $20,000, automobile and other assets $15,000; mortgage loan balance $80,000, and car loan $0 (paid off). The net worth five years later would be [$225,000 + $120,000 + $20,000 + $15,000] - $80,000 = $300,000.

In other words, the couple's future net worth has gone up by $35,000 despite the decrease in the value of their residence and car. The increase in net worth is because the decline in residence value was more than offset by increases in other assets (e.g., investment portfolio and savings), as well as the decrease in liabilities.