How to calculate net worth with a mortgage
Include your home’s current value as an asset and the outstanding mortgage as a liability. Their difference is home equity. Add your other assets and subtract your other debts to find total net worth.
Record the home and the loan separately
Use an estimate of what the property is worth today, rather than its original purchase price. For the mortgage, use the remaining principal balance from your lender, not the sum of all future payments. Future payments include interest that has not yet accrued.
For a shared property, use the ownership share and debt responsibility appropriate to the person or household you are tracking. Keep that scope consistent with the rest of the balance sheet. Include other loans secured against the property as liabilities too.
Count home equity once
A $600,000 home with a $400,000 mortgage contributes $200,000 to net worth. You can represent that as the full asset and liability, or as net equity in a simplified summary. Do not enter the $600,000 home, add $200,000 of equity, and then subtract the mortgage: that would count the equity twice.
NetCarry keeps the full asset and liability separate so you can assign an appreciation assumption to the home and an interest rate to the mortgage. That makes their effects on estimated annual growth visible.
Separate home appreciation, interest, and cash flow
Home appreciation changes the asset value. Mortgage interest is a borrowing cost. Principal repayment reduces the liability. A payment made from existing cash also reduces that cash asset, so principal repayment alone is not a new investment gain.
Home equity is also different from cash available to spend. A balance sheet is not a sale-proceeds estimate: selling costs, taxes, moving costs, and replacement housing can all affect how much value you can access. The growth calculator leaves these costs out.
A homeowner’s balance sheet
| Item | Amount |
|---|---|
| Home value | $600,000 |
| Investments | $200,000 |
| Cash | $20,000 |
| Remaining mortgage | −$400,000 |
| Other debt | −$10,000 |
| Total net worth | $410,000 |
The home contributes $200,000 of equity. The $410,000 total includes that equity once, alongside investments, cash, and other debt.
Common questions
Should I subtract all future mortgage interest?
For this current balance sheet, use the outstanding loan balance. Future interest is a future expense, not the same as the principal you currently owe. The annual growth comparison estimates interest separately.
What if my mortgage is larger than my home value?
The property then contributes negative equity to the balance sheet. Keep both values visible rather than flooring equity at zero. Other assets and debts still contribute to total net worth.
Does NetCarry automatically update my home and mortgage?
No. NetCarry imports authorized investment account values through SnapTrade. Homes, mortgages, and other manual items use values you enter and update yourself.
Sources & methodology
Examples are illustrative. Product descriptions reflect NetCarry’s current calculations and account features.