Liquid Net Worth Calculator
Calculate your cash-convertible assets for financial planning
Financial Assets & Liabilities
Liquid Assets
Total Liquid Assets: $120,000
Total Liabilities
Total Liabilities: $205,000
Monthly Expenses (for Emergency Fund Assessment)
Include rent, utilities, food, and essential expenses
Liquid Net Worth Analysis
Financial Health Status: Critical
Your liabilities exceed your liquid assets. Focus on debt reduction and building emergency savings.
Emergency Fund Assessment
You need to build an emergency fund immediately.
Asset Breakdown
Liability Breakdown
Improvement Recommendations
Priority 1: Reduce high-interest debt (credit cards) immediately
Priority 2: Create a basic emergency fund of $1,000
Example: Mirabelle's Liquid Net Worth
Financial Situation
Name: Mirabelle
Total Liquid Assets: $120,000
Total Liabilities: $50,000
Monthly Expenses: $4,500
Liquid Net Worth Calculation
Formula: Liquid Net Worth = Total Liquid Assets - Total Liabilities
Calculation: $120,000 - $50,000 = $70,000
Emergency Fund: $70,000 ÷ $4,500 = 15.6 months coverage
Financial Health: Excellent - Strong financial security
Liquid vs Non-Liquid Assets
- • Cash & Bank Accounts
- • Stocks & Bonds
- • Mutual Funds & ETFs
- • Money Market Accounts
- • Treasury Bills
- • Real Estate
- • Retirement Accounts (401k/IRA)
- • Art & Collectibles
- • Business Ownership
- • Precious Metals
Financial Health Levels
Negative liquid net worth - immediate debt reduction needed
Low liquidity ratio - focus on emergency fund building
Some liquid assets but need improvement
Reasonable liquidity - maintain and grow
Strong financial flexibility and security
Emergency Fund Guidelines
3-6 months: Standard recommendation
6-12 months: Self-employed or unstable income
3 months: Dual income, stable jobs
1 month: Minimum for debt payoff phase
Understanding Liquid Net Worth
What is Liquid Net Worth?
Liquid net worth is the amount of your net assets that can be quickly converted into cash. Unlike total net worth, which includes all assets regardless of how quickly they can be sold, liquid net worth focuses on financial flexibility and immediate access to funds.
Why It Matters
- •Emergency preparedness
- •Debt management capability
- •Investment opportunities
- •Financial stress reduction
Calculation Formula
Liquid Net Worth = Total Liquid Assets - Total Liabilities
Where liquid assets can be converted to cash within 90 days
Improvement Strategies
- •Build emergency fund systematically
- •Pay down high-interest debt first
- •Increase liquid investment holdings
- •Automate savings to liquid accounts
Liquid vs Total Net Worth
Liquid Net Worth
- • Cash and cash equivalents
- • Publicly traded securities
- • Money market accounts
- • Short-term CDs
- • Immediate access to funds
Total Net Worth
- • Real estate properties
- • Retirement accounts
- • Business ownership
- • Collectibles and art
- • All assets minus all liabilities