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HoldingCost

Net worth projection calculator

Model where your wealth is heading — assets, debts, and net worth over time.

Calculator forecast

Logic updated April 2026

This calculator projects your net worth (assets minus debts) over a multi-year horizon based on current position, ongoing savings rate, and long-run growth assumptions. It iterates year by year — assets compound, savings are added at year-end, and debts stay constant unless you model their reduction separately. The output shows a year-by-year trajectory plus the year you cross any milestone.

How this is calculated

Formula 

Each year: assets = (assets × (1 + assetGrowth/100)) + annualSavings ; netWorth = assets − debts ; annualSavings = (income − expenses) × 12, or (monthlySavings × 12) if overridden

Step-by-step

  1. Take current assets and debts as the starting position; net worth = assets − debts
  2. Each year, multiply existing assets by (1 + asset growth rate) — that's investment growth
  3. If using income/expense mode: grow income and expenses each year by their own rates, then derive monthly savings from the difference
  4. If using fixed-savings mode: use the supplied monthly savings figure flat each year
  5. Add annual savings (12 × monthly figure) to assets at year-end (no growth in contribution year)
  6. Net worth (year n) = assets(n) − debts ; debts stay constant unless modelled separately
  7. Identify milestone years: $100k, $500k, $1M, $2M crossings
Rounding mode
ROUND_HALF_UP
Precision
20-digit internal precision (Decimal.js), rounded to 2 decimal places for display
Logic last reviewed

Assumptions & limitations

What this calculator assumes

  • Existing assets appreciate at the supplied annual asset growth rate, compounded yearly
  • Annual savings are contributed at the end of each year and do not earn growth in their contribution year
  • When monthly savings is not overridden, savings derive from (income − expenses) with each growing at its own rate
  • When monthly savings is overridden, the supplied monthly amount is applied flat every year without growth
  • Existing debts remain constant across the projection — the calculator does not model debt amortisation
  • Taxes, asset sale costs, and market volatility are not modelled
  • Negative savings in any year are floored at zero

What this calculator doesn’t account for

  • Doesn't model debt repayment — debts stay flat
  • Doesn't include taxes on investment growth or income
  • Doesn't factor in lifestyle inflation that grows expenses faster than income
  • Doesn't model market volatility or sequence-of-returns risk
  • Doesn't include any windfalls (inheritance, bonus payments) or major one-off costs

Worked example

A 35-year-old with $80,000 of assets, $250,000 of mortgage debt, $7,500 monthly income growing 3%, $5,500 monthly expenses growing 3%, projecting 25 years at 6% asset growth.

Input Value
Current assets / debts $80,000 / $250,000
Net worth today −$170,000
Monthly income / expenses (year 1) $7,500 / $5,500
Income / expense growth 3% / 3%
Asset growth 6%
Horizon 25 years

Year 25 net worth: ~$1.5M — Crosses $0 around year 4 — Crosses $1M around year 18

Year 1 savings: ($7,500 − $5,500) × 12 = $24,000. Assets grow to $80k × 1.06 + $24k = $108,800. Year 25: assets compound to ~$1.75M (with savings adding each year, slightly outpacing income/expense inflation). Subtract the $250k mortgage = ~$1.5M net worth. The borrower goes from negative net worth today to wealthy in 25 years through consistent savings + asset growth. Note: the mortgage stays flat in this model — in reality it would amortise to zero, adding another ~$250k of net worth.

Frequently asked questions

How is net worth calculated?

Total assets (cash, investments, property, vehicles, retirement accounts, valuables) minus total debts (mortgage, loans, credit cards, any money owed). The result can be positive (net wealth) or negative (more owed than owned). Net worth is the single best snapshot of financial position because it captures both what you own and what you owe — single-number metrics like income or savings rate miss the debt side.

What growth rate should I use?

For diversified equity portfolios, historical real returns have averaged 5–7% (which is 7–10% nominal at current inflation). For property, 3–5% real (5–8% nominal). For bonds, 0–2% real. For cash, 0% real (1–4% nominal). Use a blended rate matching your asset mix. Conservative: 4–5%; balanced: 6–7%; growth-heavy: 7–9%. Avoid using past 5-year returns — markets are mean-reverting, recent history isn't predictive.

How does debt affect net worth projection?

This calculator holds debt constant — useful for sizing the asset side independently. In reality, mortgage and most loan debts amortise to zero over their term, which itself adds wealth. To model debt repayment, layer a separate calculation: subtract a fraction of debt each year, or use the loan calculator to compute remaining balance at each year. The combined view is your true projected net worth.

How often should I recalculate my net worth?

Quarterly for actual tracking; annually for the full projection in this calculator. Quarterly captures the impact of market moves and big purchases without becoming an obsession. Annually for the projection because the assumptions (growth rate, savings rate) don't change quarter to quarter and re-running too often creates noise without insight. Most financially-organised households do an end-of-year net worth review and re-project.

Should I use real or nominal growth rates?

Match the rate to the framing. If you want today's-dollar net worth (what could it buy?), use real growth rates and real income/expense growth. If you want projected statement-balance figures (what will the number be in 25 years?), use nominal rates. Real comparisons are more honest about long-horizon outcomes; nominal numbers match what you'll actually see. Don't mix — using nominal asset growth with real income growth produces nonsense.

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