Net worth growth calculation is the process of determining the increase in the value of a person’s or organization’s assets over time. For example, if an individual has assets worth $100,000 at the beginning of the year and $120,000 at the end of the year, their net worth growth for that period would be $20,000.
Calculating net worth growth is important because it can provide valuable insights into a person’s or organization’s financial health. By tracking net worth growth over time, individuals can identify trends and make informed decisions about their financial future. Additionally, net worth growth can be used to compare financial performance with others or against industry benchmarks.