In personal finance, the value of everything you own minus everything you owe is called net worth.
Assets can include bank balances, investments, vehicles, property, and valuable personal items. Liabilities include credit-card balances, mortgages, student loans, car loans, and other debts. The basic calculation is assets minus liabilities, so net worth can be positive or negative.
Net worth is a snapshot at a particular date rather than a measure of monthly earnings. Someone can have a high income but a low net worth if debts and spending are also high. Conversely, a person with modest income may build substantial net worth by saving, investing, and reducing liabilities over time.
A balance sheet is the document or statement used to present assets and liabilities; net worth is the resulting difference. Home equity is included in net worth when a home’s market value and its mortgage balance are both counted.