Guide
How to calculate net worth
Net worth is what you own minus what you owe. The formula is simple. The hard part is listing every account in the currency it actually sits in, then looking at the same number next month. This guide walks through the calculation and how Iron Wealth keeps it live on your phone.
The formula, without the TED talk
Assets add. Liabilities subtract. Checking, savings, investments, cash, and crypto are assets. Credit cards and loans are liabilities. Your car or house can count if you would treat them as wealth you could sell; if you would never sell the car, you can still log it and watch the loan separately. Honesty beats a flattering number.
Why a weekend spreadsheet goes stale
Most people calculate net worth in a sheet, then ignore the rates and the credit-card tab until Sunday night. The cell is only as fresh as the last paste. Iron Wealth rolls the same six account types into one figure as you log balances or transactions, with a history chart so the habit has a place to live.
Multi-currency is part of the math
If you hold GHS, NGN, USD, or EUR in different wallets, converting everything by hand is where the sheet breaks. Keep each account in its native currency, then let live rates produce one headline. That is how remittance and diaspora households should calculate net worth, not by pretending everything is dollars.
Free core, then Pro if you want a longer model
The free core includes net worth tracking with 3 accounts, plus budgets, goals, and Finance AI. Pro unlocks unlimited accounts and planning tools. You can learn the formula on this page, then keep the live number in the app.
Questions
- Does net worth include my house?
- It can. Count the market value as an asset and the mortgage as a liability. Iron Wealth lets you log both. Educational only; this is not a valuation service.
- Do I need to connect my bank to calculate net worth?
- No. Write balances down or log them in Iron Wealth. Bank login is not required.
- How often should I recalculate?
- Monthly is enough for most people. Recalculate after a large transfer, a new loan, or a move between currencies.
Calculate once by hand if you want the intuition. Then track the same number on iOS or Android without rebuilding the sheet.
