- Nov 20, 2011
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What is your Net Worth. It would calculated as follows. Assets - Debts = Net Worth.
So if you own a 500K home and owe 300K and have 100K in student loans then your net worth would be calculated as follows 500K - (300K+100K) = net worth of 100K
Example 2
500K home owe 450K and have a 100K student loan
500K - (450K + 100K) = negative net worth Since you have more debts than the assets can cover in a liquidation event.
So if you own a 500K home and owe 300K and have 100K in student loans then your net worth would be calculated as follows 500K - (300K+100K) = net worth of 100K
Example 2
500K home owe 450K and have a 100K student loan
500K - (450K + 100K) = negative net worth Since you have more debts than the assets can cover in a liquidation event.