Net Worth
If you want to know whether your business (and personal finances) are actually growing over time—not just generating revenue—you need to track net worth. It’s the single number that shows whether you’re building real wealth or just staying busy.
What Is Net Worth?
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities). It represents your true financial position—what you’d have left if you sold everything and paid off all your debts.
You can think of net worth as your financial scorecard:
A positive number means you own more than you owe
A negative number means debt exceeds what you own
In Quicken, your net worth is calculated automatically by subtracting your total liabilities from your total assets, giving you a real-time snapshot of your financial health.
Formula:
Net Worth = Total Assets − Total Liabilities
Why Net Worth Matters
Net worth shows whether your financial position is improving or declining over time—not just whether money is coming in.
Understanding net worth helps you:
Track your true financial progress month over month
See whether your business is building equity or just generating income
Make better decisions about borrowing, investing, or expanding
Understand your complete financial picture—not just cash flow
Set meaningful long-term financial goals
Without tracking net worth, you can feel profitable and busy while your financial position quietly weakens—especially if debt grows faster than your assets.
What Counts Toward Net Worth
Assets (what you own)
Assets include everything with financial value, such as:
Checking and savings accounts
Investments (stocks, funds, crypto, retirement accounts)
Real estate and property values
Business equipment and vehicles
Money customers owe you (Accounts Receivable)
Liabilities (what you owe)
Liabilities include all outstanding debts, such as:
Mortgages and business loans
Credit card balances
Car, student, or equipment loans
Unpaid bills and vendor balances
Quicken adds these up behind the scenes so you don’t have to.
How Net Worth Grows or Shrinks
Net worth grows when the value of what you own increases faster than what you owe.
This doesn’t always require earning more money—it comes from how income, saving, investing, and debt work together over time.
This is why people increase net worth by paying off and not incurring debt, earning more income, or because investments rise in value.
Net worth shrinks when debt grows or assets lose value faster than you build savings and investments—even if your paycheck stays the same.
This is why people can feel financially “okay” because their pay check stays the same, while quietly falling behind because of their spending or investments loosing value.
Real-World Example
Net worth is a snapshot. It can go up even when you're in debt, and it can go down even when you're being responsible—it all depends on the full picture of what you own versus what you owe.
Net Worth Increasing
Example 1: Paying Down Debt Sarah starts the year with $45,000 in student loans and $8,000 in her savings account. Her net worth is -$37,000.
Over the year, she pays off $12,000 of her loans while her savings grows to $12,000.
End of year: $33,000 in debt, $12,000 in savings = net worth of -$21,000
Her net worth increased by $16,000 even though she's still in the negative.
Example 2: Home Value Appreciation Marcus bought his home for $280,000 with a $240,000 mortgage. His initial home equity: $40,000.
Two years later, comparable homes in his neighborhood sell for $320,000. He's paid his mortgage down to $230,000.
His home equity is now $90,000 ($320,000 - $230,000), a $50,000 increase in net worth.
Example 3: Business Value Increase Carlos runs a consulting business valued at $120,000 based on annual revenue. He has $30,000 in business debt and $25,000 in the business bank account.
After landing two major clients, his business is now valued at $180,000. Business debt is down to $22,000, with $40,000 in the bank.
Business net worth increased from $115,000 to $198,000 (up $83,000).
Net Worth Decreasing
Example 1: Emergency Medical Expenses Tom starts with $25,000 in savings, a paid-off car worth $15,000, and no debt. Net worth: $40,000.
An unexpected surgery costs $18,000 after insurance. He uses his savings to pay it.
New net worth: $7,000 savings + $15,000 car = $22,000 (down $18,000)
Example 3: Taking On New Debt David buys a new car for $45,000 with a $40,000 loan and $5,000 down payment from savings.
The moment he drives off the lot, the car is worth $38,000 (due to immediate depreciation).
His net worth dropped by $7,000:
Lost $5,000 from savings
Car asset is $38,000 but debt is $40,000 (negative $2,000 equity)
Example 3: Business Loss Maya's catering business was valued at $150,000. She has $60,000 in business debt and $20,000 in equipment.
After losing her two largest clients, her business value drops to $80,000. She takes on an additional $15,000 loan to stay afloat.
Starting business net worth: $150,000 + $20,000 - $60,000 = $110,000 New business net worth: $80,000 + $20,000 - $75,000 = $25,000 (down $85,000)
Where to See Net Worth in Quicken
Quicken gives you multiple ways to view your net worth, depending on how detailed you want to go.
Dashboard / Home tab
Your Net Worth is displayed to left, above accounts. Clicking on Net Worth opens the Networth Dashboard where you can see the Transactions, Spending, and Income that were used to arrive at the number.Reports
Go to Reports > Net Worth for detailed breakdowns by account.
Tips for Accurate Net Worth Tracking
To get the most reliable net worth number:
Add all major asset accounts (bank, investments, property, vehicles)
Add all liability accounts (loans, credit cards, mortgages)
Review which accounts are included in Net Worth settings
Keep property and loan values up to date
Use Quicken’s planners and projections to see how today’s decisions affect future net worth
The more complete your account list, the more meaningful your net worth becomes.
The Bottom Line
Net worth is the clearest measure of whether your business and personal finances are truly improving. By tracking what you own versus what you owe, Quicken helps you move beyond income and expenses to see the real story behind your financial progress.