Enter your total liquid assets and your total liabilities into the calculator to determine your liquid net worth.
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Liquid Net Worth Formula
The following equation is used to calculate a business or individuals liquid net worth.
LNW = LA – LB
- Where LNW is liquid net worth
- LA is the liquid assets
- LB is the total liabilities
Liquid net worth is the total net worth of an individual or business that is liquid. This means that the assets are easily converted to cash, or are already in cash or cash equivalents.
All liabilities should be included when using the formula. Normally. this results in ones liquid net worth often times being negative, as intended.
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