Net worth is the single most important number in your financial life. It’s a snapshot of your total financial position — everything you own minus everything you owe. Tracking it over time tells you whether you’re actually making progress, regardless of income. This guide covers how to calculate it, where you stand compared to other Canadians, and how to grow it.
How to Calculate Your Net Worth
Net Worth = Assets – Liabilities
Assets (What You Own)
| Asset | How to Value |
|---|---|
| Home | Current market value (check comparables) |
| Other real estate | Current market value |
| TFSA | Current balance |
| RRSP/RRIF | Current balance |
| FHSA | Current balance |
| RESP | Current balance |
| Non-registered investments | Current balance |
| Pension (DB/DC) | Commuted value or account balance |
| Savings accounts | Current balance |
| Vehicles | Trade-in/private sale value |
| Business equity | Estimated value |
| Other (collectibles, crypto, etc.) | Conservative estimate |
Liabilities (What You Owe)
| Liability | Amount |
|---|---|
| Mortgage balance | Outstanding principal |
| Car loan | Outstanding balance |
| Student loans | Outstanding balance |
| Lines of credit | Outstanding balance |
| Credit card balances | Total owing |
| Other loans | Outstanding balance |
Detailed methodology: How to Calculate Net Worth
Quick calculation: Net Worth Calculator
See your percentile: Net Worth Percentile Calculator
Average Net Worth by Age in Canada
| Age Group | Average Net Worth | Median Net Worth |
|---|---|---|
| Under 35 | ~$200,000 | ~$50,000 |
| 35–44 | ~$520,000 | ~$235,000 |
| 45–54 | ~$880,000 | ~$460,000 |
| 55–64 | ~$1,200,000 | ~$640,000 |
| 65+ | ~$1,100,000 | ~$540,000 |
The median (middle person) is more representative than the average, which is pulled up by wealthy outliers. Home equity makes up the majority of net worth for most Canadian households.
Full breakdown: Net Worth by Age Canada
Savings comparison: Average Savings by Age Canada
How to Grow Your Net Worth
Net worth grows through three levers:
1. Increase Your Savings Rate
The gap between what you earn and what you spend is the engine of net worth growth. A 20% savings rate builds wealth dramatically faster than a 5% rate.
| Monthly Income | 5% Savings Rate | 20% Savings Rate |
|---|---|---|
| $5,000 | $250/month | $1,000/month |
| $7,000 | $350/month | $1,400/month |
| $10,000 | $500/month | $2,000/month |
2. Invest Consistently
Cash savings barely keep up with inflation. Investing in a diversified portfolio (index ETFs) turns your savings into compounding growth.
| Monthly Investment | 7% Return / 10 Years | 7% Return / 20 Years | 7% Return / 30 Years |
|---|---|---|---|
| $500 | $86,000 | $260,000 | $584,000 |
| $1,000 | $173,000 | $520,000 | $1,168,000 |
| $2,000 | $346,000 | $1,040,000 | $2,336,000 |
3. Reduce Liabilities
Every dollar of debt paid off increases your net worth by one dollar — guaranteed. High-interest debt (credit cards, personal loans) should be eliminated first.
Net Worth Milestones
| Milestone | Significance |
|---|---|
| $0 (debt-free) | You owe less than you own — most Canadians don’t reach this until their 30s |
| $100,000 | First major milestone — compound growth accelerates from here |
| $250,000 | Meaningful investment income begins |
| $500,000 | Coast FIRE becomes possible for some |
| $1,000,000 | Can generate ~$40,000/year at 4% withdrawal rate |
| $2,000,000 | Comfortable early retirement is possible |
Common Net Worth Questions
What about my home? Yes, include it. Home equity is a real asset — you can access it through downsizing, a HELOC, or a reverse mortgage. However, a home doesn’t generate investment returns (aside from appreciation), so don’t count on it alone for retirement.
What about my pension? Yes, include it. For a defined benefit pension, use the commuted value from your annual statement. For a defined contribution pension, use the current account balance.
Should I include my car? Yes, but use the realistic sale value (trade-in or private sale), not what you paid.