Net worth is a significant key to measuring an organization’s performance. The value represents the value of shareholders’ equity of that company. We can easily create a net worth formula balance sheet using Microsoft Excel. If you are curious about the procedure to design the net worth formula balance sheet in Excel, download our practice workbook and follow us.

## What Is Net Worth?

The value of the **net worth** of any organization represents the deduction value of the **total liabilities** from **total assets**. It is a significant key for benchmarking the performance of any institution. The general expression of this term is:

**Net Worth = Total Assets – Total Liabilities**

**Read More: **How to Make Balance Sheet Format in Excel for Individual

## 2 Suitable Examples of Net Worth Formula Balance Sheet in Excel

To demonstrate the procedure, we consider **two** easy examples of the net worth balance sheet. The first one is for some **general variables**, and the second one is for the **detailed variables**.

### 1. Calculating Net Worth from General Variables

In this example, we are required to input **11** variables of our organization. We will input the value of those variables in the range of cells **C5:C11**, and their corresponding titles are in the range of cells **B5:B11**.

**Step 1: Input Required Variables**

In our first step, we have to input all the required variables’ values for our company.

- Input all of those variables’ values for your company in the range of cell
**C5:C11**as shown in the image.

Thus, we can say that we completed the first step.

**Step 2: Calculate Total Assets**

In this step, we will calculate the value of **total assets**. The mathematical expression of **total assets** is:

**Total Assets = Inventories + A/C Receivable + Total Fixed Assets + Cash in Bank**

To complete the calculation, we will use **the SUM function**.

- First of all, select cell
**B13**and entitle the cell as**Total Assets**.

- Now, in cell
**C13**, write down the following formula in the cell.

`=SUM(C5:C8)`

- Press
**Enter**.

- You will find the value of
**total assets**.

In the end, we can say that we have finished the second step to create a net worth formula balance sheet in Excel.

**Step 3: Evaluate Total Liabilities**

Now, we are going to estimate the value of **total liabilities**. The general expression of **total liabilities** is:

**Total Assets = Trade A/C Payable + Short-Term Debt + Long-Term Debt**

For estimating the value, we will use **the SUBTOTAL function****.** Besides that, you can also use **the SUM function**.

- First, select cell
**B14**. - Then, entitle the cell as
**Total Liabilities**.

- After that, write down the following formula into cell
**C14**.

`=SUBTOTAL(9,C9:C11)`

- Similarly, press
**Enter**.

- You will find the value of
**total liabilities**.

In the end, we can say that we have finished the third step to create a net worth formula balance sheet in Excel.

**Step 4: Estimate Value of Net Worth**

This is the final step to generating a net worth formula balance sheet. After completing the step, we get the value of the **net worth **of our company.

- At first, select cell
**B15**. - Now, entitle the cell as
**Net Worth**.

- Then, write down the following formula in cell
**C15**.

`=C13-C14`

- Press the
**Enter**. - You will find the value of
**net worth**.

So, we can say that all of our formulas worked perfectly and we are able to create a net worth formula balance sheet in Excel.

**Read More:** How to Prepare Charitable Trust Balance Sheet Format in Excel

### 2. Estimating Net Worth Through Detailed Variables

In the following example, we need to input about **14** types of variables. The titles of the variables are in the range of cells **B5:B18 **and the corresponding cells to input their values are in the range of **C5:C11**.

**Step 1: Input All Necessary Variables**

In the first step, we have to input all the necessary variables’ values for our company.

- Input the variables’ values for your company in the range of cell
**C5:C18.**

So, we can say that we finished the first step.

**Step 2: Estimate Total Assets**

Now, we will calculate the value of **total assets**. In this case, the general expression of **total assets** is:

**Total Assets = Inventories + A/C Receivable + Market Securities + Cash & Cash Equivalents + Vendor Non-Trade Receivables + Total PPE + Other Current Assets + Other Non-Current Assets**

To evaluate the value, we will use **the SUM function**.

- At first, select cell
**B13**. - Now, write down the title of that cell as
**Total Assets**.

- After that, in cell
**C13**, write down the following formula in the cell.

`=SUM(C5:C12)`

- Press
**Enter**.

- You will find the value of
**total assets**.

At last, we can say that we have completed the second step to create a net worth formula balance sheet in Excel.

**Step 3: Determine Total Liabilities**

Here, we will evaluate the value of **total liabilities**. The mathematical expression of **total liabilities** is:

**Total Assets = Deferred Revenue + A/C Payable + Other Current Liabilities + Commercial Paper + Long-Term Debt + Other Non-Current Liabilities**

**The SUBTOTAL function** will help us to get the value of **total liabilities.** Besides it, you can also use **the SUM function**.

- First of all, select cell
**B14**and entitle the cell as**Total Liabilities**.

- Then, write down the following formula in cell
**C14**.

`=SUBTOTAL(9,C13:C18)`

- Similarly, press
**Enter**.

- You will get the value of
**total liabilities**.

Thus, we can say that we completed the third step to create a net worth formula balance sheet in Excel.

**Step 4: Calculate the Value of Net Worth**

Now, in this final step, we will get the value of **net worth**.

- First, select cell
**B15**. - After that, entitle the cell as
**Net Worth**.

- Now, write down the following formula in cell
**C15**.

`=C13-C14`

- Again, press
**Enter**. - Finally, you will find the value of
**net worth**.

So, we can say that all of our formulas worked successfully and we are able to create a net worth formula balance sheet in Excel.

**Read More: **How to Create Consolidated Balance Sheet Format in Excel

**Download Practice Workbook**

Download this practice workbook for practice while you are reading this article.

## Conclusion

That’s the end of this article. I hope that this article will be helpful for you and you will be able to create a net worth formula balance sheet in Excel. Please share any further queries or recommendations with us in the comments section below if you have any further questions or recommendations.

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