Net Worth Calculator
What is the ideal net worth for my age?
This is a common question for those starting to invest, and there are many ways to answer that. Below, we'll show you a simple formula that is often used by many financial advisors, which takes into account your age and standard of living.
- Ideal Net Worth = Monthly Expenses x Age x 12 x (10% ~ 15%)
For instance, if you are 21-year-old with a monthly expense of $1,500.00, applying this formula we would have:
- Ideal Net Worth = 1,500.00 x 22 x 12 x (10% ~ 15%)
- Ideal Net Worth = $37,800.00 ~ $56,700.00
In summary, for a 21-year-old person who has a monthly expense of $1,500.00, the ideal net worth is between $37,800.00 and $56,700.00.
We know it is difficult for people on their early 20's to already have this much equity; people on this age are usually studying or starting their professional life, but this formula is just a basic parameter.
Examples for $3,000.00 monthly expenses
|Age||Ideal Net Worth|
|20 years old||Between $72,000.00 and $108,000.00|
|25 years old||Between $90,000.00 and $135,000.00|
|30 years old||Between $108,000.00 and $162,000.00|
|35 years old||Between $126,000.00 and $189,000.00|
|40 years old||Between $144,000.00 and $216,000.00|
|45 years old||Between $162,000.00 and $243,000.00|
|50 years old||Between $180,000.00 and $270,000.00|
For more simulations, feel free to use our calculator below.