Your net worth is the clearest snapshot of your financial health. It's not about how much you earn—it's about what you own minus what you owe. Whether you're just starting out, buying your first home, or planning for retirement, understanding and tracking your net worth helps you make better financial decisions and measure your progress over time.
How to Calculate Net Worth
The net worth formula is simple: add up everything you own (assets), subtract everything you owe (liabilities), and the result is your net worth.
| Assets (What You Own) | Liabilities (What You Owe) |
|---|---|
| RRSP balance | Mortgage balance |
| TFSA balance | HELOC (Home Equity Line of Credit) |
| Home equity (market value) | Credit card balances |
| Car value (current resale) | Car loan |
| Savings accounts | Student loans |
| Pension value (if applicable) | Other debts (lines of credit, etc.) |
The Formula
Net Worth = Total Assets - Total Liabilities
Calculate Your Net Worth
Use our interactive calculator to see your current net worth and how it compares to the average Canadian in your age group.
Canadian Net Worth Calculator
Calculate your net worth and compare to Canadian averages
💰Assets (What You Own)
📉Liabilities (What You Owe)
How You Compare to Other Canadians
You're below average for your age group. Focus on increasing savings rate and paying down high-interest debt to catch up.
Average Canadian Net Worth by Age (2026)
Source: Statistics Canada estimates
| Age Group | Average Net Worth |
|---|---|
| Under 25 | $15,000 |
| 25-34 | $95,000 |
| 35-44 | $260,000 |
| 45-54 | $550,000 |
| 55-64 | $850,000 |
| 65+ | $1,100,000 |
Get Your Net Worth Tracking Spreadsheet
Track your net worth quarterly with our free Google Sheets template. Automatically charts your progress and includes all asset and liability categories.
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Real-World Examples
Let's look at three real scenarios to see how net worth works across different life stages:
Recent Grad with Student Debt
Starting career with negative net worth
Scenario:
- •Jordan, age 24: Recent university graduate, first job
- •Annual income: $55,000
- •Assets: TFSA $3,000, Car $8,000
- •Liabilities: Student loans $26,000
Result: It's completely normal to have negative net worth early in your career, especially with student loans. Jordan should focus on paying down the debt while building TFSA contributions. Within 5-7 years of consistent saving and debt payment, net worth will likely be positive.
Mid-Career Homeowner
Above-average net worth with home equity
Scenario:
- •Priya, age 42: Homeowner, married with 2 kids
- •Household income: $125,000
- •Assets: Home $660,000, RRSP $95,000, TFSA $45,000, Car $12,000, Savings $8,000
- •Liabilities: Mortgage $280,000, HELOC $200,000, Car loan $20,000
Result: Priya is below the StatsCan 2023 median of ~$409,300 for the 35-44 age group, primarily due to the large HELOC. Paying down the HELOC is the priority to grow net worth. She should continue maximizing RRSP and TFSA contributions while aggressively reducing the HELOC balance.
Pre-Retiree Couple
Strong net worth, ready for retirement
Scenario:
- •Tom & Linda, age 61: Both planning to retire at 65
- •Household income: $155,000 combined
- •Assets: Home $850,000, Combined RRSP $380,000, TFSA $120,000, Savings $50,000
- •Liabilities: Mortgage $250,000 (paid off soon), no other debt
Result: Tom and Linda are in excellent shape for retirement. With a net worth over $1 million and only 4 years until retirement, they're well-positioned. Once the mortgage is paid off, their net worth will exceed $1.4M. They should focus on tax-efficient RRIF conversion and CPP timing strategies.
Key Takeaway from Examples
Net worth naturally increases with age as you pay down debt and build assets. Don't compare yourself to people in different life stages—focus on steady progress year over year. Even if you start with negative net worth, consistent saving and debt reduction will move you toward your goals.
Frequently Asked Questions
Frequently Asked Questions
Q:Should I include my RRSP in net worth?
A:Yes, you should include your RRSP in your net worth calculation. Even though you'll pay income tax when you withdraw from your RRSP, it's still an asset you own. The full RRSP balance counts toward your net worth. Some people prefer to calculate a 'tax-adjusted net worth' by reducing their RRSP value by 20-30% to account for future taxes, but the standard approach is to include the full amount.
Q:Is home equity counted in net worth?
A:Yes, home equity is a major component of net worth. Calculate it by taking your home's current market value and subtracting your outstanding mortgage balance. For example, if your home is worth $800,000 and you owe $500,000 on your mortgage, your home equity is $300,000. This is one of the largest assets for most Canadian homeowners and should always be included in your net worth calculation.
Q:What's a good net worth at 40?
A:According to Statistics Canada's 2023 Survey of Financial Security, the median net worth for Canadians aged 35-44 is $409,300 (up from $270,800 in 2019). However, this varies significantly by location — Toronto and Vancouver residents often have higher net worth due to home values, while those in other provinces may have lower figures. A practical rule of thumb: aim for net worth equal to your annual income multiplied by your age divided by 10. So at age 40 earning $80,000, you'd target $320,000. The median (not average) is more useful since a small number of very wealthy Canadians skew the average upward.
Q:Should I include my car in net worth?
A:Yes, you should include your car at its current resale value, not what you paid for it. Check sites like Canadian Black Book or AutoTrader to estimate what you could sell it for today. If you have a car loan, include the car as an asset and the loan as a liability. For example, if your car is worth $15,000 and you owe $8,000, you'd add $15,000 to assets and $8,000 to liabilities, contributing $7,000 to your net worth.
Q:What if my net worth is negative?
A:Negative net worth is very common for Canadians under 30, especially those with student loans or those who recently bought their first home with a small down payment. It's not a permanent situation. Focus on paying down high-interest debt first (credit cards, car loans) while building emergency savings. As you pay off debt and build assets in your TFSA or RRSP, your net worth will gradually move from negative to positive. Most people see significant improvement within 5-10 years of starting their career.
Q:How often should I calculate net worth?
A:Most financial experts recommend calculating your net worth quarterly (every 3 months) or at minimum annually. Quarterly tracking helps you spot trends and stay motivated as you watch your net worth grow. Choose a consistent date like the first day of each quarter (January 1, April 1, July 1, October 1) and track it in a spreadsheet. This regular tracking helps you see the impact of debt payments, investment growth, and major financial decisions over time.
Question: Should I include my RRSP in net worth?
Answer: Yes, you should include your RRSP in your net worth calculation. Even though you'll pay income tax when you withdraw from your RRSP, it's still an asset you own. The full RRSP balance counts toward your net worth. Some people prefer to calculate a 'tax-adjusted net worth' by reducing their RRSP value by 20-30% to account for future taxes, but the standard approach is to include the full amount.
Question: Is home equity counted in net worth?
Answer: Yes, home equity is a major component of net worth. Calculate it by taking your home's current market value and subtracting your outstanding mortgage balance. For example, if your home is worth $800,000 and you owe $500,000 on your mortgage, your home equity is $300,000. This is one of the largest assets for most Canadian homeowners and should always be included in your net worth calculation.
Question: What's a good net worth at 40?
Answer: According to Statistics Canada's 2023 Survey of Financial Security, the median net worth for Canadians aged 35-44 is $409,300 (up from $270,800 in 2019). However, this varies significantly by location — Toronto and Vancouver residents often have higher net worth due to home values, while those in other provinces may have lower figures. A practical rule of thumb: aim for net worth equal to your annual income multiplied by your age divided by 10. So at age 40 earning $80,000, you'd target $320,000. The median (not average) is more useful since a small number of very wealthy Canadians skew the average upward.
Question: Should I include my car in net worth?
Answer: Yes, you should include your car at its current resale value, not what you paid for it. Check sites like Canadian Black Book or AutoTrader to estimate what you could sell it for today. If you have a car loan, include the car as an asset and the loan as a liability. For example, if your car is worth $15,000 and you owe $8,000, you'd add $15,000 to assets and $8,000 to liabilities, contributing $7,000 to your net worth.
Question: What if my net worth is negative?
Answer: Negative net worth is very common for Canadians under 30, especially those with student loans or those who recently bought their first home with a small down payment. It's not a permanent situation. Focus on paying down high-interest debt first (credit cards, car loans) while building emergency savings. As you pay off debt and build assets in your TFSA or RRSP, your net worth will gradually move from negative to positive. Most people see significant improvement within 5-10 years of starting their career.
Question: How often should I calculate net worth?
Answer: Most financial experts recommend calculating your net worth quarterly (every 3 months) or at minimum annually. Quarterly tracking helps you spot trends and stay motivated as you watch your net worth grow. Choose a consistent date like the first day of each quarter (January 1, April 1, July 1, October 1) and track it in a spreadsheet. This regular tracking helps you see the impact of debt payments, investment growth, and major financial decisions over time.
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Need Help Building Wealth?
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