A Net Worth Calculator is simply calculating your own total of all debts and liabilities, and minus it from total values of all assets. It can quick calculate to determine your net worth by calculate: Your total of owned (Assets) – your total of owed (liabilities).
It is obvious that the businesses are always interested to know, what is present net worth of the business. Even it is also much important for personal may require financial statement when applying for a loan. In the business environment, most of the investors wants to know the current worth before investing their money to proposed business. At the same way, business owners are also continuously monitoring the present net worth values so that they can change any positive business strategies / plans or continue with current situation.
- What is the present net worth calculator?
- Calculation of Net Worth
- A Net worth can be negative?
- Net worth figures can be opportunity for business
- Samples of Net Worth Calculator
What is the present net worth calculator?
The present net worth calculator is common accounting tool that make your net worth calculation easy. It is works on simple formulas: Total all assets – Total all debts and liabilities. As you can see this is very simple calculation, for the individuals as well businesses. The intent of this tools is to providing a quick and accurate figures to business or individual without any complex calculations, as well serious efforts.
To calculate the present net worth, you can use excel spreadsheet. This can be help you to calculate your personal present net worth figures accurately.
Calculation of Net Worth
Net Worth = Assets – Liabilities (Including Debts)
When you are going to calculation of net worth, remember that the assets that toward net worth tend to be liquid assets. Even you can also count some fixed type assets, which details we will share later on. As the same side, liabilities are easy to classify. You can include everything that you owe in the financial liabilities. It is also important for the calculations of total of assets and liabilities for the quick and accurate results. Here we tried to make the details of assets and liabilities with bit in easier language.
Remember that, when talking about calculating a net worth, a total of assets should include cash, and items that you could sell for cash. It means the liquid assets are requiring to considers along with fixed assets which potential cash conversion possible. Usually, the financial assets may include the cash in saving accounts, certificates of deposits, life insurance, retirement accounts, real estate investments, stocks and bonds, mutual funds, treasury bills. Even you can also include some personal properties, such as cars, jewelry, as well collectibles. In short, everything that could be converted to cash values.
Some peoples can’t prefer to listing their home in the assets, or anything that does not want to sell. But if you are calculating home or anything which is consider their mortgage, or loan values that under the liabilities head. So, you have to also consider your home as assets.
Practically, all the debts should be put under the head of liabilities. Revolving consumer debts, such as credit card balance, fall into this category. In short, financial liabilities may include everything that you owe, such as credit card debts, loan, auto loans, real estate mortgages etc. During the calculation of the liabilities, you can realize that your total liabilities can be possible to reduce through potential planning.
Usually, at the end of the calculations, you should have to put down a summarized view of the net worth of an organization is given. This is very important part of the entire net worth calculation process. Because through it, reviewer can be verifying the figures, details and your brief explanations.
A Net worth can be negative?
It can be possible that any business’s net worth describes a negative figure. This can be happening when any company’s liabilities are exceeding its assets. Normally, it is describing the business taken too much money and subsequently had its income fall as its debt payments rose. Remember that, Net worth of a business is actually most considerable report that many investors can ask for it. Because its shows the financial stability, and balance of the financial transactions.
Net worth figures can be opportunity for business
Whenever we figure out the actual net worth, we can realize that what it really status is? Even we can also know what are the total assets, and how much liabilities we have. Now, we are enabled to take any actions to improve the positive worth amount.
Another opportunity is, once we identify net worth we really can see how much total liabilities we have, even you can verify the total debts and liabilities with outstanding payments. In case of the liabilities are exceeding the assets it can be negative sign for the business. In case not the exceeding, still you have accurate figure of your all debts and liabilities. Now, you can control over the debts, and liabilities to minimize the potential debts.
Samples of Net Worth Calculator
These ready made samples will be easy to manage your financial figures. First of all, you have to list your assets – what you own, and estimate the value of each. Now you can list your liabilities – what you owe, and as same estimate the values and total these amounts. Now, you have to minus total liabilities’ amount from total assets’ amount. You will get net worth amount as result. Actually, this samples will be help you to manage all your assets, as well liabilities which you need to incorporate with your sheet.
Excel Net Worth Calculator
Creating Net worth calculator with any other document such as word, or any other can be tough to manage the figures. But with excel spreadsheet make your works more effective. Because excel having a facility to auto calculate with specific formulas, as well advance tools that make your works more accurate. This ready made template having all the functions, and information which is covering all the details for identifying net worth. The calculation of each asset, as well liabilities, even more finding a net worth you get automatically through pre-defined formulas. You do not need to any effort for manual calculations, as well setup all the details for net worth calculation. Just enter the values and get it.
Simple Net Worth Calculator
The template may provide your facility to calculate your net worth. This financial statement you can use for various purposes such as applying for loan, show to your investors, etc. This ready made template having a sections – there are two major sections, one is section for assets, and section for liabilities. Even more, this sheet gives you facility for automatically calculation the totals of each amount.