net worth
Net worth (noun) means the total value of everything a person or organisation owns, minus everything it owes; the figure that would be left if all assets were sold and all debts paid off. Example: “Once the mortgage was cleared, their net worth rose sharply.”
How to Use Net worth
Learner’s notesIn plain EnglishEverything you own, minus everything you owe.
Neutral. Used both in accounting, where the equivalent for a company is often called equity or net assets, and in everyday talk about personal finances.
High net worth is a fixed phrase used to describe wealthy clients; it is hyphenated before a noun, as in high-net-worth individual.
Trace the full origin ↓Fill the Gap
Can you complete this real example?
Once the mortgage was cleared, their _____ rose sharply.
Etymology
From net, meaning remaining after deductions, plus worth.
Synonyms
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Related Words
Frequently Asked Questions
What is the difference between net worth and income?
Income is money arriving over a period of time, such as a salary each month. Net worth is a snapshot of accumulated value at a single moment — what is owned minus what is owed. A high earner with large debts can have a lower net worth than someone on a modest income who owns their home outright.
Can net worth be negative?
Yes. If debts exceed the value of what is owned, the figure is below zero. This is common early in life, for example where student loans or a new mortgage are larger than the assets held against them.
What counts as an asset when working out net worth?
Anything with resale value: cash and savings, investments, pension pots, property, vehicles and valuable possessions. Set against these are liabilities — mortgages, loans, credit card balances and other money owed.