How to calculate your networth in Excel
How to calculate your networth in Excel using simple formulas based on the total of your assets and liabilities. But why calculate your networth?
- It lets you know if you are building on assets or moving in the negative direction on your financial health
- It lets you know the amount of liquidity you have
- It helps you control any rate interest mismatch on assets and liabilities
- Last not least, it is the statrting point for a financial plan
You can list your liabilities and assets in the columns as shown. The difference between what you own (assets) and what you owe (liabilities) gives you your networth as on the date shown. We have used simple formulas like ‘sum’ and functions like conditional formatting to calculate the networth and also highlight whether the networth is positive or negative. The networth is formatted as ‘blue’ if positive and ‘red’ if negative. As time passes and depending on your working, your networth may grow or fall. Sometimes actions beyond your control may change you networth.
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