Liquid Net Worth Calculator
See how much of your net worth you could turn into cash within days. Home equity and vehicles are excluded, retirement accounts are discounted for taxes and penalties, and all debts are subtracted. New to the idea? Start with what liquid net worth is and why it matters.
Track your net worth every month, automatically.
Connect your accounts and see the liquid and illiquid sides of your money in one place. Bonsave handles the math.
What is liquid net worth?
Liquid net worth is the value of everything you could convert to cash within days, minus everything you owe. It answers a different question than total net worth. Total net worth measures wealth; liquid net worth measures flexibility: how big an emergency you could absorb, how long a job loss you could ride out, or how much you could actually deploy toward an opportunity this month. The full definition, formula, and reasoning are in our what is liquid net worth guide.
How this calculator counts each asset
- Cash and savings: 100%. Checking, savings, money market, CDs.
- Taxable brokerage: 100%. Sells in a day, settles in one or two. Capital gains tax applies to the gains, but the money is yours this week.
- Retirement accounts: discounted. Default 25%, adjustable. An early withdrawal costs income tax plus a 10% penalty, so a dollar in a 401(k) is not a liquid dollar.
- Home equity, vehicles, other assets: 0%. Real value, but not reachable within days. They still count in the total net worth figure shown alongside.
- Debts: subtracted in full. Liabilities do not become more forgiving because your assets are illiquid.
The discount is a planning convention, not a law of nature. If you are over 59 and a half, or your retirement money is mostly Roth contributions, set it lower. If you are in a high tax bracket and decades from retirement, 30 percent is closer to the truth.
Liquid vs total net worth
Two households can have identical $500,000 net worths and completely different liquid positions: one with $480,000 in index funds, the other with $480,000 locked in home equity. Same wealth, very different options. That is why this calculator always shows both numbers side by side. To compute your total net worth line by line, use the net worth calculator, and to see where it ranks against other US households, the net worth percentile calculator breaks it down by age.
Frequently asked questions
How do you calculate liquid net worth?
Add up your liquid assets (cash, savings, and taxable brokerage accounts), add your retirement accounts discounted by 20 to 30 percent for the taxes and penalties an early withdrawal would cost, then subtract all of your debts. Home equity, vehicles, and other assets you cannot sell within days are excluded entirely. The result is your liquid net worth.
What counts as a liquid asset?
Cash, checking and savings accounts, money market funds, CDs you are willing to break, and taxable brokerage investments (stocks, bonds, ETFs, mutual funds) all count as liquid, because they can become cash in your bank account within a few days. Home equity, vehicles, business equity, and collectibles do not count. Retirement accounts sit in between: reachable, but at a real cost before age 59 and a half.
Does a 401(k) count toward liquid net worth?
Partially. Most planners count retirement accounts at a discount of 20 to 30 percent, reflecting income taxes plus the 10 percent early-withdrawal penalty that a withdrawal before age 59 and a half would trigger. A $100,000 401(k) is worth roughly $70,000 to $80,000 in liquid terms. One exception: Roth IRA contributions (not earnings) can be withdrawn tax and penalty free at any age, so they count at full value.
Why is home equity excluded from liquid net worth?
Because you cannot spend it without selling the house or borrowing against it, and neither happens within days. Selling takes months and costs 6 to 10 percent in commissions and closing costs, and a home equity loan is new debt, not an asset. Home equity absolutely counts in your total net worth; it just tells you nothing about how much cash you could raise in an emergency.
What is a good liquid net worth?
There is no official benchmark, but two figures are worth checking. First, three to six months of expenses in cash or near-cash, the standard emergency fund. Second, your liquid share: what percentage of your total net worth is liquid. Homeowners commonly sit at 20 to 50 percent liquid. If nearly everything you own is home equity, your balance sheet is strong on paper and fragile in a crisis.
Know both numbers, always
Liquid net worth changes with every paycheck, market move, and card balance, which makes it tedious to recalculate by hand. Bonsave connects your accounts and tracks your full balance sheet automatically, so you can see the liquid and illiquid sides of your money without a spreadsheet.