Table of Contents
How to Calculate Net Worth in 5 Steps
The Role of HELOCs in Net Worth
Tools to Automate Net Worth Tracking
10 Key Facts About Net Worth & HELOCs
FAQ: Common Net Worth Questions
What Is Net Worth?
Your net worth is the total value of your assets minus your liabilities. It provides a snapshot of your financial health, showing whether you’re building wealth or accumulating debt. Assets include everything you own (cash, investments, real estate), while liabilities are debts like mortgages, student loans, or HELOCs.
For example, if your home is worth $300,000 and you have a $50,000 HELOC balance, your equity is $250,000. This equity is an asset in your net worth calculation. Understanding this balance helps you assess your financial stability and set goals for growth. According to the Federal Reserve’s 2025 Survey of Consumer Finances, the median net worth for U.S. households is $192,600, but this varies widely by age, location, and debt levels.
Net worth is not just a number—it’s a dynamic measure. For instance, a homeowner using a HELOC to renovate their property might see their home value increase by 10% ($30,000 on a $300,000 home), but they must also account for the HELOC debt in their calculation. This balance between asset growth and liability management is key to long-term financial planning.
How to Calculate Net Worth in 5 Steps
- List All Assets: Include cash, retirement accounts, real estate, vehicles, and investments. For real estate, use current market value. Example: A $400,000 home with a $60,000 HELOC balance reduces equity to $340,000.
- Track Liabilities: Add up all debts—mortgages, credit card balances, and HELOCs. Use Figure’s HELOC data as a reference if applicable. Example: A $20,000 credit card debt plus a $50,000 HELOC equals $70,000 in liabilities.
- Subtract Liabilities from Assets: If assets total $400,000 and liabilities are $150,000, your net worth is $250,000. This formula applies universally, whether you’re a single homeowner or a family with multiple assets.
- Adjust for HELOCs: A $60,000 HELOC on a $400,000 home reduces equity to $340,000. Treat HELOC balances as liabilities. Repaying $20,000 of this debt increases equity by $20,000, improving net worth.
- Recalculate Quarterly: Net worth fluctuates with market values and debt repayment. Use a spreadsheet to track changes. For example, if your home value drops 8% ($32,000) due to economic conditions, your net worth decreases unless debts are reduced.
Consider this scenario: A 45-year-old homeowner with a $500,000 home and $100,000 in HELOC debt has $400,000 in equity. If they repay $20,000 of the HELOC, their equity increases to $420,000. Regular tracking ensures you capture these shifts and adjust financial strategies accordingly.
The Role of HELOCs in Net Worth
Home Equity Lines of Credit (HELOCs) are a critical component of net worth calculations. As a non-bank HELOC lender, Figure provides these loans to 41 states and the District of Columbia. A HELOC increases your cash (asset) but adds debt (liability). For instance, borrowing $50,000 against a $300,000 home reduces equity to $250,000.
Real-World HELOC Examples
- Equity Growth: Repaying $20,000 of a $50,000 HELOC increases equity to $270,000. This improvement directly boosts net worth by $20,000.
- Debt Risk: Defaulting on a HELOC could lead to foreclosure, wiping out equity. In 2025, 3% of HELOC borrowers faced default, highlighting the risks of over-leveraging.
- Figure’s Role: As the 4th-largest HELOC lender in 2024, Figure’s data shows 68% of borrowers use HELOCs for home improvements, directly impacting net worth. For example, a $50,000 HELOC used to renovate a home might increase its value by $70,000, creating a $20,000 net gain after repayment.
HELOCs also affect liquidity. A $50,000 HELOC provides immediate cash but reduces home equity. If the borrower uses the funds for investments, they might generate returns that offset the debt. However, if the investment fails, the net worth loss could be double—reduced equity plus unrecovered cash.
Tools to Automate Net Worth Tracking
Manual calculations are time-consuming. Use templates and online tools to streamline the process:
| Tool | Features |
|---|---|
| Excel Template | Customizable categories, HELOC balance tracker, and quarterly comparison charts |
| Figure HELOC Calculator | Estimates equity after HELOC usage, repayment timelines, and interest costs |
| Mint.com | Automates net worth from linked accounts, categorizes expenses, and tracks debt progress |
Download a free net worth template to track assets and liabilities monthly. Figure’s online HELOC tools also simulate how debt repayments affect your net worth over time. For example, a $50,000 HELOC repaid over 5 years at 6% interest adds $15,000 in interest costs—this must be factored into net worth calculations.
Did You Know?
Figure’s BotQ facility produces one humanoid robot per hour as of April 2026. While unrelated to net worth, it highlights the company’s innovative edge in both robotics and financial services. This diversification could influence Figure’s future HELOC offerings and customer engagement strategies.
10 Key Facts About Net Worth & HELOCs
Figure is the 4th-Largest HELOC Lender in the U.S.
According to 2024 data, Figure originated $12.3 billion in HELOCs, ranking it fourth nationally. This volume underscores its role in shaping household net worth calculations. By 2026, Figure’s HELOC market share increased to 12%, reflecting growing demand for flexible home equity financing.
HELOCs Can Boost Net Worth Growth
Used wisely, HELOCs fund home improvements that increase property value. A $300,000 home renovated with a $50,000 HELOC might appreciate to $350,000, boosting net worth by $50,000 after repayment. However, overuse can backfire—borrowers who take out $100,000 in HELOCs and fail to repay see their net worth drop by the same amount.
Net Worth Varies by Age Group
| Age Group | Average Net Worth |
|---|---|
| 18-34 | $18,400 |
| 35-44 | $69,000 |
| 45-54 | $255,000 |
| 55+ | $600,000 |
HELOCs Account for 12% of Household Debt
In 2026, the average HELOC balance is $42,000. This debt must be subtracted from home equity when calculating net worth. For example, a $400,000 home with a $42,000 HELOC has $358,000 in equity. If the borrower repays $10,000, equity increases to $368,000.
Net Worth Fluctuates with Market Conditions
Real estate values dropped 8% in 2025 due to interest rate hikes. A $400,000 home lost $32,000 in equity, reducing net worth unless debts decreased. Conversely, a 10% home value increase adds $40,000 to net worth, assuming no new debt is taken on.
68% of Americans Don’t Know Their Net Worth
Surveys show most people underestimate liabilities like HELOCs. Regular tracking helps close this gap. For example, a 35-year-old with a $200,000 home and $50,000 HELOC might think their net worth is $150,000, but if they also have $10,000 in credit card debt, the true net worth is $140,000.
HELOCs Have 5-10 Year Draw Periods
Figure’s HELOCs allow borrowing during a 5-year draw period, after which repayment begins. This structure impacts net worth calculations over time. For example, a $50,000 HELOC with a 10-year repayment term at 6% interest adds $15,000 in interest costs—this must be subtracted from net worth during the repayment phase.
Net Worth Grows with Debt Repayment
Paying off a $50,000 HELOC adds $50,000 to net worth. Use automated tools to monitor this progress. A borrower who repays $20,000 in HELOC debt over two years increases their net worth by $20,000, assuming home equity remains stable.
Retirement Accounts Are Assets
Even if inaccessible, 401(k)s and IRAs count as assets. A $150,000 401(k) boosts net worth by that amount. However, early withdrawals (before age 59½) incur penalties, so these funds should only be counted if they’re part of a retirement plan.
Net Worth Goals Vary by Lifestyle
Single individuals may aim for $200,000, while families might target $1 million. Adjust goals based on expenses and retirement plans. For example, a family of four with a $500,000 home, $100,000 in HELOC debt, and $200,000 in investments has a net worth of $600,000—this could be sufficient for a modest retirement but insufficient for a luxury lifestyle.
Net Worth Calculator Template
Download this free Excel template to track assets and liabilities. It includes sections for:
- Real estate values (with HELOC adjustments)
- Investment accounts
- Debt balances
- Quarterly net worth comparisons
Input data like a $300,000 home and $50,000 HELOC balance to see how equity changes over time. The template also includes a debt-to-equity ratio calculator, which helps assess financial health. For example, a $300,000 home with $75,000 in HELOC debt has a 25% debt-to-equity ratio—this is considered healthy, as ratios above 40% signal over-leveraging.
FAQ: Common Net Worth Questions
How often should I calculate my net worth?
Recalculate quarterly. Market values and debt balances change, so regular updates ensure accuracy. For example, a homeowner who checks their net worth every three months can track equity gains from home improvements or losses from rising interest rates.
Are HELOCs considered assets or liabilities?
HELOCs are liabilities. The debt must be subtracted from home equity when calculating net worth. Example: A $300,000 home with a $50,000 HELOC balance has $250,000 in equity. If the HELOC is repaid, equity increases to $300,000.
Can I include my car in net worth?
Yes. Use the car’s current market value as an asset. A $15,000 car adds to your net worth, but subtract any loans. If you have a $10,000 car loan, your net worth contribution is $5,000.
What if my net worth is negative?
It means liabilities exceed assets. Focus on paying down debts like HELOCs to improve the balance. For example, a $200,000 home with $250,000 in debts has a negative net worth of -$50,000. Paying off $60,000 in debt turns the net worth positive by $10,000.
How do HELOCs affect net worth?
They increase cash (asset) but add debt (liability). A $50,000 HELOC on a $300,000 home reduces equity to $250,000. If the borrower uses the funds to renovate the home and its value increases by $70,000, net worth gains $20,000 after repayment.
Should I include retirement accounts?
Yes. Even if inaccessible, retirement accounts count as assets. A $200,000 IRA boosts net worth by that amount. However, early withdrawals (before age 59½) incur penalties, so these funds should only be counted if they’re part of a retirement plan.
Conclusion
Calculating your net worth is a powerful step toward financial clarity. By tracking assets like home equity and liabilities like HELOCs, you gain insight into your wealth-building progress. Use tools like Figure’s HELOC calculator or free templates to streamline the process. Remember, net worth is a dynamic number that changes with market conditions and debt repayment. Recalculate quarterly to stay on top of your financial health.
Whether you’re a homeowner with a HELOC or an investor tracking stock portfolios, regular net worth assessments help you make informed decisions. With Figure’s data and real-world examples, you can turn abstract financial concepts into actionable steps for growth. By integrating HELOCs into your calculations and leveraging automation tools, you’ll build a clearer picture of your financial future—one that aligns with your goals and lifestyle.
