Why exclude retirement accounts?
401(k)s and IRAs have penalties for early withdrawal, so they aren't considered 'liquid' for immediate emergencies.
Calculator
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Used to calculate runway
Analysis
Interpretation of the current calculator output
Enter values to see detailed analysis and insights.
How to Use
Step-by-step instructions
- 1Enter cash on hand and checking account balances
- 2Add savings and money market accounts
- 3Include non-retirement investment accounts (stocks/bonds)
- 4Subtract credit card debt and personal loans
- 5Result is the money you can access immediately
Liquid Net Worth Formula
Liquid Assets are cash or assets easily converted to cash (stocks, bonds). Liquid Liabilities are debts that must be paid soon (credit cards). Excludes real estate and retirement accounts.
LNW = Liquid Assets - Liquid LiabilitiesVariables:
Liquid AssetsCash, Savings, Money Market, StocksLiabilitiesCredit Card Debt, Personal LoansExample
Emergency Fund Check
Inputs:
Cash & Savings:$35,000
Stocks:$30,000
Credit Card Debt:$5,000
Steps:
- 1.Total Liquid Assets = $35,000 + $30,000 = $65,000
- 2.Liquid Net Worth = $65,000 - $5,000 = $60,000
Result:
$60,000 Liquid Net Worth
Frequently Asked Questions
Why exclude my house?
Real estate takes months to sell. Liquid net worth focuses on cash you can access within days.
How much liquid net worth should I have?
A common rule of thumb is 3-6 months of living expenses in cash/savings (Emergency Fund).