Short answer
Net worth = total assets − total liabilities. Add up the market value of everything you own (bank accounts, TFSA, RRSP, FHSA, investments, home, car), subtract every debt you owe (mortgage, lines of credit, credit cards, loans), and the result is your net worth.
RRSPs, TFSAs and home equity all count. The median Canadian family unit had a net worth of $519,700 in 2023 (Statistics Canada). To skip the arithmetic, use our free net worth calculator.
The Net Worth Formula
Net worth is a snapshot of your finances on one day. The formula is the same everywhere:
Net worth = Assets − Liabilities
Assets at what they would sell for today. Liabilities at what it would take to pay them off today.
Income is not part of it. A $150,000 salary with $140,000 of spending and a car loan can produce a lower net worth than a $60,000 salary with steady saving. That is why net worth is the better scorecard for long-term progress, and why it pairs well with a monthly budget: the budget controls the flow, net worth measures the result.
How to Calculate Your Net Worth, Step by Step
- Pick a date. Use the same date every time, such as the first of the month, so results are comparable.
- Collect account balances. Chequing, savings, every credit card, lines of credit, and each investment account (TFSA, RRSP, FHSA, RESP, non-registered, workplace plans). Log in to each institution or check your latest statements.
- Value what isn't cash. Your home, cars and anything else with real resale value, at today's realistic sale price.
- List every debt. Mortgage principal remaining (not the original amount), HELOC, car loan, student loans, buy-now-pay-later plans, family loans, and any income tax you owe the CRA.
- Subtract total liabilities from total assets.
- Write it down and repeat monthly or quarterly. The trend matters far more than any single result.
Do the math in two minutes
The free Unified net worth calculator has separate fields for TFSA, RRSP, RESP and home equity, and compares your result with StatCan medians for your age. No sign-up.
What Counts Toward Net Worth (and How to Value It)
The rule of thumb: if you could sell it or withdraw it, it is an asset; if you are obliged to repay it, it is a liability. The hard part is not the list, it is putting an honest number next to each item.
Assets
| Asset | Count it? | How to value it |
|---|---|---|
| Chequing, savings, cash | Yes | Current balance |
| TFSA | Yes | Market value of everything inside it today |
| RRSP / RRIF | Yes | Market value (optionally reduced for tax, see below) |
| FHSA | Yes | Market value |
| RESP | Optional | Your contributions plus growth; grants can be clawed back |
| Non-registered investments | Yes | Market value (unrealized gains may be taxable when sold) |
| Defined contribution pension / group RRSP | Yes | Balance on your latest statement |
| Defined benefit pension | Optional | Commuted or termination value from your pension statement, if shown |
| Home and other real estate | Yes | Realistic sale price based on recent comparable sales |
| Vehicles | Yes | Today's resale value, not purchase price |
| Crypto | Yes | Market value; it can swing a lot between updates |
| Business ownership | Yes | Conservative estimate of what your share would sell for |
| CPP and OAS | No | No balance you own or can withdraw |
| Furniture, electronics, clothes | Usually no | Resale value is low and hard to pin down |
Liabilities
| Liability | How to value it |
|---|---|
| Mortgage | Remaining principal on your latest statement |
| HELOC and lines of credit | Current balance owing |
| Credit cards | Full statement balance, even if you pay it in full each month |
| Car loan or lease | Payoff amount (for a lease, only if you count the car as an asset) |
| Student loans | Federal and provincial balances combined |
| Buy now, pay later | Remaining instalments |
| Taxes owing | Any balance due to the CRA |
| Personal loans and family loans | What you have agreed to repay |
RRSP, TFSA, FHSA and Home Equity
These four make up most of what a typical Canadian household owns, and each has a quirk.
Does an RRSP count toward net worth?
Yes, at its full market value. That is the standard convention and what Statistics Canada does. The catch is tax: the CRA treats RRSP withdrawals as taxable income, so $50,000 in an RRSP is not $50,000 of spending money. If you want a conservative figure, multiply the balance by (1 − your expected tax rate when you withdraw). We show how in the after-tax net worth section.
Does a TFSA count toward net worth?
Yes, at full value with no tax adjustment, because TFSA withdrawals are tax-free. Count what the account holds today, not your contribution room and not what you originally deposited. A TFSA that holds a $10,000 ETF position worth $13,400 adds $13,400.
Does an FHSA count?
Yes. Count its market value. Qualifying withdrawals to buy a first home are tax-free; if the money ends up not being used for a home and is withdrawn, it is taxable, so treat it like an RRSP for the after-tax view in that case.
Does home equity count toward net worth?
Yes. Put the home's estimated market value under assets and the mortgage balance under liabilities; the difference is your equity. Two cautions:
- Be realistic about value. Recent sales of similar homes nearby are a better guide than the peak listing you saw on your street. Selling also costs money: the Financial Consumer Agency of Canada notes that commissions typically range from 2% to 6%, plus legal fees and possibly a mortgage prepayment penalty. You can subtract an estimate of those for a conservative figure.
- It isn't spendable. You need somewhere to live, so many people also track net worth excluding their principal residence. A gain on a home that qualifies for the principal residence exemption is generally not taxed when you sell.
Worked Example: A Canadian Renter at 31
Priya is a fictional 31-year-old in Calgary. She rents, has a car she still owes money on, and saves through her TFSA and a group RRSP at work. Here is her calculation:
| Item | Type | Amount |
|---|---|---|
| Chequing and high-interest savings | Asset | $11,200 |
| TFSA (ETFs) | Asset | $27,500 |
| Group RRSP through work | Asset | $19,800 |
| FHSA | Asset | $9,000 |
| Car (resale value) | Asset | $16,000 |
| Total assets | $83,500 | |
| Car loan | Liability | $12,400 |
| Student loan | Liability | $8,900 |
| Credit card statement balance | Liability | $1,600 |
| Total liabilities | $22,900 | |
| Net worth | $60,600 |
Fictional example for illustration. $83,500 − $22,900 = $60,600.
The median net worth for Canadian family units where the main earner is under 35 was $159,100 in 2023, so Priya is below the median for her age group. That comparison is less alarming than it looks: the under-35 median includes homeowners, whose home equity lifts the figure, and couples with two incomes. Her better benchmark is her own number a year from now.
Gross, After-Tax and Liquid Net Worth
One number can hide a lot. Calculating three versions takes a few extra minutes and tells you much more:
| Version | What changes | Priya's figure |
|---|---|---|
| Gross net worth | Everything at market value (the standard) | $60,600 |
| After-tax net worth | RRSP reduced by an assumed 25% withdrawal tax rate ($19,800 × 0.25 = $4,950) | $55,650 |
| Liquid net worth | Only cash and non-retirement investments you can access quickly, minus all debts. Excludes the RRSP, FHSA (earmarked for a home) and car | $15,800 |
Liquid: $11,200 cash + $27,500 TFSA − $22,900 debts = $15,800. The 25% rate is an assumption for illustration, not a tax estimate.
The liquid figure is the one to watch if you are building an emergency fund or deciding whether you can absorb a job loss. The after-tax figure matters most as retirement approaches and RRSP balances grow. If you hold non-registered investments with large unrealized gains, you can apply the same idea: currently, half of a capital gain is included in taxable income, per the CRA's capital gains guide.
Common Mistakes When Calculating Net Worth
- Using purchase prices. A car bought for $38,000 three years ago is worth what it sells for now.
- Leaving out credit card balances because you pay them in full. On the day you measure, you owe them.
- Counting the original mortgage instead of the remaining principal.
- Double-counting joint accounts when partners each calculate their own net worth.
- Forgetting small accounts: an old savings account, a workplace plan from a previous job, a forgotten store card.
- Updating once and never again. A single snapshot can't tell you whether you are moving in the right direction.
Average Net Worth in Canada
Statistics Canada's Survey of Financial Security is the most detailed public source on Canadian household wealth. Its 2023 results (released October 29, 2024) measure net worth per family unit by the age of the major income earner:
| Age of major income earner | Median net worth | Average net worth |
|---|---|---|
| Under 35 years | $159,100 | $459,800 |
| 35 to 44 years | $409,300 | $753,500 |
| 45 to 54 years | $675,800 | $1,150,800 |
| 55 to 64 years | $873,400 | $1,347,300 |
| 65 years and older | $738,900 | $1,204,500 |
| All family units | $519,700 | $995,900 |
Source: Statistics Canada, Table 11-10-0016-01, Survey of Financial Security 2023, 2023 dollars.
Medians are the better benchmark. Averages are pulled up by the wealthiest households, which is why the average is roughly double the median in every age group. Net worth also tends to rise until retirement and then flatten or fall as people draw down savings: the median peaks at $873,400 for ages 55 to 64 versus $738,900 at 65 and older, after $409,300 at 35 to 44 and $675,800 at 45 to 54.
Across all ages, a net worth of $12,800 marked the 10th percentile of family units, $519,700 the 50th, and $2,488,700 the 90th (Table 11-10-0049-01). The net worth calculator shows which band your result falls in, with medians by province too. For the full picture, including family type, what Canadian net worth is made of and the homeowner gap, see our guide to average net worth in Canada.
Tracking Net Worth Over Time
Once you have a first number, the useful question becomes is it going up, and why? There are three common ways to keep it current:
| Method | Effort | Best for |
|---|---|---|
| Spreadsheet | Manual: re-enter every balance each time | People with few accounts who like full control |
| One-off calculator | Manual, but structured | A quick check or a first baseline |
| App connected to your accounts | Balances update automatically; only the home and car need manual values | Anyone with accounts at several institutions |
If your accounts are spread across several Canadian institutions, say chequing at TD, a TFSA at Wealthsimple and a mortgage at RBC, the manual approach quickly becomes a chore. Our guide to free net worth trackers for Canadians compares the options. Investors who mainly want portfolio analytics may prefer an investment-focused tool; see our Wealthica review.
Unified, the app we build, connects to Canadian banks, credit cards and investment accounts with read-only access, recalculates net worth as balances sync, and puts it next to your budgets and spending so you can see what is driving the change. It costs $6.99 CAD per month or $69 CAD per year after a 14-day free trial.
Frequently Asked Questions
What is the formula for net worth?
Net worth = total assets − total liabilities. Assets are everything you own that has a cash or resale value (bank accounts, TFSA, RRSP, FHSA, other investments, the market value of your home and vehicles). Liabilities are everything you owe (mortgage, lines of credit, credit card balances, car and student loans). If liabilities are larger, your net worth is negative.
Should I calculate net worth before or after tax?
Most people, and Statistics Canada, use the before-tax figure: every account at its market value. It is worth also calculating an after-tax version, because RRSP and RRIF withdrawals are taxed as income and some investments carry unrealized capital gains. Comparing the two shows how much of your net worth is really spendable.
Should couples calculate net worth together or separately?
Either works, as long as you are consistent. Statistics Canada measures net worth per family unit, so a household figure is the right one to compare with its medians. If finances are separate, calculate each person's net worth and add joint assets and debts once, not twice.
Does an RESP count toward my net worth?
You can include it, but many parents track it separately. The money is legally the subscriber's, but government grants (the Canada Education Savings Grant) may have to be repaid if the beneficiary does not go on to post-secondary education, so the balance is not entirely yours to spend.
Should I include my car in net worth?
Yes, at what it would sell for today, not what you paid. Vehicles lose value quickly, so update the figure at least once a year. Any car loan or lease buyout balance goes in liabilities.
Is a negative net worth bad?
Not necessarily. It is common for students with loans and for people early in their careers. It can also happen briefly after buying a home if the down payment was small. What matters is the trend: paying down debt and saving consistently will move it toward zero and then above it.
What is the average net worth in Canada?
According to Statistics Canada's 2023 Survey of Financial Security, the median net worth of Canadian family units was $519,700 and the average was $995,900. The median is the better benchmark for a typical household because a small number of very wealthy families pull the average up.