Net Worth Tracker 2025: Calculate Your Real Wealth + Home Equity
Did you know? Homeowners build $50K-$100K in equity in just 5 years while renters build zero. Track your net worth and see how buying a home accelerates your wealth. Our calculator shows you exactly how much equity you're building.
Track Your Net Worth & Home Equity
See how much wealth you're building through homeownership. Start building equity today — buy your first home or refinance.
Get Pre-Approved & Build Equity →What is Net Worth? Why Does It Matter?
Net worth = Total Assets - Total Liabilities. It's your real wealth — what you'd have left if you sold everything and paid off all debts.
💰 Net Worth Formula
- Assets: Home value, savings, investments, retirement accounts, car
- Liabilities: Mortgage balance, credit card debt, car loans, student loans
- Net Worth: Assets - Liabilities = Your real wealth
Get pre-approved and start building home equity immediately. First, calculate your exact monthly payment to see how much equity you'll build.
Homeowner vs Renter: The Wealth Gap
Let's compare net worth growth over 5 years for a homeowner vs renter:
| Factor | Homeowner | Renter |
|---|---|---|
| Down Payment | $80,000 (20%) | $0 |
| Home Value (5 years) | $480,000 (+20%) | N/A |
| Mortgage Balance (5 years) | $290,000 (paid down $30K) | N/A |
| Home Equity | $190,000 | $0 |
| Savings (5 years) | $50,000 | $150,000 |
| Total Net Worth | $240,000 | $150,000 |
| Wealth Gap | +$90,000 AHEAD! | — |
The homeowner is $90,000 wealthier after just 5 years! This is the power of building equity. Start building equity today.
How Home Equity Builds: 3 Ways You Get Richer
1️⃣ Principal Paydown (Forced Savings)
Every mortgage payment reduces your loan balance. You're forced to save $1,000-$3,000/month in equity.
- Year 1: Pay down ~$6,000 in principal
- Year 5: Total principal paid = ~$35,000
- Year 30: Loan paid off, 100% equity
2️⃣ Home Appreciation (Market Growth)
Homes typically appreciate 3-5% annually. Your $400K home becomes $480K-$510K in 5 years.
- 3% annual appreciation: +$60K in 5 years
- 5% annual appreciation: +$110K in 5 years
- You benefit from 100% of appreciation (not just your down payment!)
3️⃣ Leverage (Amplified Returns)
You control a $400K asset with only $80K down. If the home appreciates 5%, you make $20K on your $80K investment = 25% return!
- $80K down payment on $400K home = 5x leverage
- 5% appreciation = $20K gain on $80K invested = 25% ROI
- Renting $1,600/month = $0 wealth building
Get pre-approved and start building equity through all 3 methods. Understand how inflation makes your mortgage payment cheaper over time.
Your Action Plan: Build Your Net Worth
- Calculate your current net worth: Assets - Liabilities = Your wealth today.
- Set a 5-year goal: How much net worth do you want to build?
- Get pre-approved: Get pre-approved for a mortgage to start building equity.
- Compare lenders: Find the best rate to maximize your wealth building.
- Track annually: Monitor your net worth growth as you build equity.
Ready to Build Your Net Worth?
Stop renting and start building equity. Get pre-approved and buy your first home today.
Get Pre-Approved & Build Wealth →Frequently Asked Questions
How much net worth can I build by buying a home?
On average, homeowners build $50K-$100K in net worth over 5 years through principal paydown and appreciation. Renters build $0 in home equity.
What if home values go down?
Even in a down market, you're still building equity through principal paydown. Plus, homes historically appreciate 3-5% annually over long periods.
Can I access my home equity?
Yes! You can use a home equity loan or HELOC to borrow against your equity for renovations, debt payoff, or other needs. Your equity is accessible wealth.
How does refinancing affect my net worth?
Refinancing to a lower rate lets you pay down principal faster, building equity quicker. A cash-out refi lets you access your equity for investments.
Is buying better than renting for net worth?
For long-term wealth building, buying typically wins. Homeowners build $50K-$100K in equity while renters build $0. However, buying requires stability and long-term commitment.
What's the best strategy to maximize net worth?
Buy a home with a good rate, make extra principal payments, and hold for 5+ years. This combines forced savings, appreciation, and leverage for maximum wealth building.