**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.

## Download Practice Workbook

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

## 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**

## 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 **detail variables**.

### 1. Calculating Net Worth from General Variables

In this example, we require 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 it, 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 into 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: ****Balance Sheet Format in Excel with Formulas (Create with Easy Steps)**

### 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 into 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 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 into 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 Make Balance Sheet in Excel (2 Useful Examples)**

## 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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