How can I estimate my future net worth?

Definitions

Net worth is the value of assets minus outstanding liabilities. Nominal values use future currency amounts; real values adjust for purchasing power. Cash runway is a separate measure because some assets cannot readily fund spending.

Worked example: five annual contributions

Assume an investment asset starts at 10,000, grows at a constant 4% annually and receives 1,200 at the end of each year for five years. Its modeled closing value is 18,666.12. With an unchanged liability of 3,000 and no other assets, closing net worth is 15,666.12.

Formula and assumptions

Future asset value = P × (1 + r)^n + C × ((1 + r)^n − 1) / r. Here P = 10,000, r = 0.04, C = 1,200 and n = 5. When r = 0, use P + C × n. Contributions occur at year-end; the liability balance stays constant; fees, taxes, inflation and withdrawals are excluded.

Limitations and sensitivity

This constant-return example is not LifePlan engine output. Actual returns vary and can be negative. A debt that accrues interest or receives repayments cannot be held constant. Compare lower returns and higher costs, and distinguish nominal gains from purchasing-power gains.

Sources and scope

Investor.gov’s calculator distinguishes starting investment, contributions, estimated return and compounding frequency. Investor.gov also describes potential investment loss and inflation risk. The example assumptions are illustrative.

• Investor.gov: compound interest calculator
• Investor.gov: what is risk?

Sources checked October 30, 2026. Examples use generic currency units. Educational information, not personal financial, tax or legal advice. Seek qualified advice for decisions specific to your circumstances.

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