Complete Guide to Net Worth Calculation for Indian Investors

Understanding your net worth is the single most important step in personal finance. Net worth tells you where you stand financially today and where you will be in the future.

This guide explains net worth calculation in the simplest way possible, especially for Indian earners making ₹0–30 lakh per year.

⭐ What is Net Worth?

Net worth means:

Net Worth = Total Assets - Total Liabilities

This formula is simple, but applying it properly takes understanding.

⭐ Assets You Should Count

✔ Financial Assets

  • SIP value
  • Mutual funds
  • Shares
  • Gold ETFs
  • Bank savings
  • FDs/RDs
  • Crypto

✔ Physical Assets

  • Gold
  • Land
  • House / Apartment
  • Car (after depreciation)

CheckYourNetWorth.in allows you to add all these.

⭐ Liabilities You Must Count

✔ Loans

  • Home loans
  • Car loans
  • Personal loans
  • Credit card loans

✔ Any EMI you are paying

If you owe money, it is a liability.

⭐ How We Calculate Asset Growth (CAGR)

Most assets grow using CAGR:

Value_n = Value_0 × (1+CAGR)^n

Where:

  • n = number of years/months

CheckYourNetWorth.in converts this into monthly growth automatically.

⭐ How We Calculate Loan Impact

Loan installments (EMI) reduce your net worth because you lose money monthly.

Home/car loan EMI formula:

EMI = P × [r(1+r)^n] / [(1+r)^n - 1]

We track:

  • EMI payments
  • outstanding loan
  • depreciating or appreciating value of the asset

A car loan reduces your net worth because the car depreciates.

A home loan might increase your net worth because the house appreciates.

⭐ Why Net Worth is Better Than Income

Income shows only how much you earn.

Net worth shows whether your wealth is increasing or decreasing.

A person earning ₹5 lakh/year but investing wisely may have higher net worth than someone earning ₹20 lakh/year but spending everything.

⭐ Common Mistakes Indians Make

  • ❌ Counting house value without subtracting loan balance
  • ❌ Not accounting for car depreciation
  • ❌ Mixing personal money with business money
  • ❌ Overestimating returns (hoping for 15–20% every year)
  • ❌ Ignoring future liabilities

⭐ Why Net Worth Projection Matters

It helps you plan:

  • retirement
  • child's education
  • buying a house
  • buying a car
  • reducing debt
  • early financial freedom

⭐ How CheckYourNetWorth.in Calculates Your Future Net Worth

We calculate:

  • SIP growth
  • lump-sum growth
  • asset appreciation
  • loan depreciation
  • loan EMIs
  • withdrawals
  • net effect on future wealth

We then show a month-wise net worth graph for up to 40 years.

No other calculator gives this level of detail.

Final Thoughts

Your net worth is the most accurate indicator of your financial health.

Use CheckYourNetWorth.in to track and simulate your future wealth and stay ahead financially.