In brief
- Net worth equals total assets minus total liabilities, for a teacher and a tech founder alike.
- Forbes deducts known debt and excludes assets given to foundations, while Bloomberg shows liabilities in each person's breakdown.
- Forbes values private companies against listed peers and then applies a 10% liquidity discount.
- The 2026 Forbes 400 fixed net worths as of 4 September 2026, while Bloomberg updates its index every business day.
How is net worth calculated? The formula is simple: total assets minus total liabilities. For billionaires and celebrities, Forbes estimates each asset, such as company stakes, property and art, then subtracts known debt. The Bloomberg Billionaires Index updates its figures every business day. As of October 2026, their estimates for the same person often differ.
| Item | Detail |
|---|---|
| Basic formula | Net worth = total assets minus total liabilities |
| Main publishers | Forbes (annual lists plus Real-Time Billionaires) and the Bloomberg Billionaires Index (daily) |
| Public shares | Valued at market price on a set date (Forbes) or the latest New York close (Bloomberg) |
| Private companies | Forbes values them against comparable listed companies, then takes a 10% liquidity discount |
| Debt | Forbes deducts known debt; Bloomberg shows liabilities in each person’s breakdown |
| Latest Forbes snapshot | Forbes 400 net worths as of 4 September 2026; Real-Time list updated daily |
What is the formula for net worth?
Net worth equals everything a person owns minus everything they owe. How net worth is calculated is the same for a teacher and a tech founder; only the assets are harder to price.
Assets include cash, company shares, property, art, yachts, jets and car collections. Liabilities include mortgages, personal loans and loans secured against shares, so large borrowing can leave net worth well below the headline holdings.
Also readAmerica’s 10 Richest People 2026The figure is always an estimate at a point in time, because share prices move daily and private assets have no live price.
How is net worth calculated by Forbes?
Forbes values every asset it can identify, deducts known debt and charitable gifts, and fixes the result to a single date. For its 2026 World’s Billionaires list, Forbes used stock prices and exchange rates from 1 March 2026. For the 2026 Forbes 400, net worths are as of 4 September 2026.
According to Forbes’ 2026 Forbes 400 methodology, reporters try to interview the subjects themselves, then check figures with employees, advisers, rivals and lawyers. They also review SEC filings, court filings and probate records.
Private companies at Forbes
Forbes estimates a private company’s revenue or profit, then applies the price-to-sales or price-to-earnings ratios of similar listed companies. It then takes a 10% liquidity discount, because a private stake is harder to sell. For venture-backed start-ups, Forbes generally uses the latest funding round, adjusted with secondary-market trading data and sector performance since that round.
Wealth held by a living founder’s immediate family is listed under the founder’s name, and assets given to foundations or donor-advised funds are excluded.
How does the Bloomberg Billionaires Index value wealth?
Bloomberg describes its index as a daily ranking of the world’s richest people. Each net worth is updated every business day after trading closes in New York.
Stakes in listed companies are valued at the most recent closing share price and converted to US dollars at current exchange rates. Because most large fortunes are held in shares, a single day’s market move can shift the ranking.
Bloomberg sorts each fortune into categories, including public holdings, private assets such as closely held businesses, art and real estate, and miscellaneous liabilities. Each person’s profile includes a breakdown of how the figure is calculated, and Bloomberg publishes a fuller methodology on its website.
Forbes vs Bloomberg: how the methods compare
The two rankings follow the same assets minus liabilities logic but differ on valuation choices and timing. Those choices explain many of the gaps between their figures.
| Factor | Forbes | Bloomberg Billionaires Index |
|---|---|---|
| Coverage | 3,428 billionaires on the 2026 world list | A daily ranking of the world’s richest people |
| Update frequency | Annual lists plus daily real-time figures | Every business day after the New York close |
| Listed shares | Share prices on a fixed date for each list | Most recent closing price |
| Private companies | Price-to-sales or price-to-earnings of listed peers, less a 10% liquidity discount | Shown as private assets in each breakdown |
| Debt | Known debt deducted | Shown as liabilities in each breakdown |
| Interviews with subjects | Yes, where possible | Profiles explain the calculation for each person |
Why do net worth estimates differ?
Estimates differ because private assets have no market price, debt is often hidden, and each publisher fixes its figures on a different date. A small change in any input can move a large fortune by billions of dollars.
- Private valuations: one ranking may use a peer’s earnings multiple while another uses a sales multiple, and the discount taken for a hard-to-sell stake can differ.
- Hidden debt: loans secured against shares or property are not always disclosed, so one publisher may deduct a loan the other cannot see.
- Timing: a list fixed in March can look out of date by September if share prices move.
- Family splits: Forbes groups some family wealth under the founder, which can raise one person’s figure.
Timing alone can move a fortune sharply within a year, as Forbes’ figures for Elon Musk show.
| Forbes snapshot | Date of figures | Elon Musk estimate |
|---|---|---|
| 2026 World’s Billionaires list | 1 March 2026 | $839 billion |
| 2026 Forbes 400 | 4 September 2026 | $908 billion |
| Forbes Real-Time Billionaires | 14 October 2026 | $945.2 billion |
For the full picture on the world’s richest man, see our Elon Musk net worth breakdown, and for the wider ranking, our list of the richest people in the world.
Worked example: calculating a net worth step by step
The example below is an illustration with invented round numbers. It does not describe any real person.
Imagine a founder who owns 20% of a private software company with $500 million in annual revenue. Similar listed companies trade at 6 times revenue.
| Step | Calculation | Result |
|---|---|---|
| Company value | $500 million revenue x 6 | $3 billion |
| Founder’s stake | 20% of $3 billion | $600 million |
| Liquidity discount (10%) | $600 million minus $60 million | $540 million |
| Add cash and investments | Illustrative figure | $100 million |
| Add property | Two homes at estimated market value | $50 million |
| Subtract debt | Mortgage plus loan secured on shares | minus $90 million |
| Estimated net worth | $540m + $100m + $50m minus $90m | $600 million |
If a second publisher used a smaller 5% discount, the stake would be $570 million. If it could not see the $90 million loan, the estimate would rise to $720 million. That is a $120 million gap from the same assets.
How are celebrity net worths calculated?
Celebrity net worth is calculated with the same formula, but the inputs are less transparent. Athletes and entertainers earn salaries, endorsement fees and royalties, and the key question is how much they kept after tax, agents’ fees and spending. Stakes in brands, such as a beauty or drinks company, are valued like any other private business. That is why figures for stars such as Cristiano Ronaldo’s net worth vary between sources. Many fortunes never make the lists at all, as our guide to the hidden richest people in the world explains.
Treat any figure without a named source and date with caution.
Sources
Forbes: Forbes 400 Methodology: How We Crunched The Numbers In 2026 · Forbes: Inside Forbes’ 2026 Billionaires List: More Than 3,400 Worth $20 Trillion · Forbes: Forbes Releases Its 45th Annual Forbes 400 Ranking Of Richest Americans · Forbes: Real-Time Billionaires · Bloomberg: Bloomberg Billionaires Index · Bloomberg: Compare asset breakdowns of the fortunes on the Bloomberg Billionaires Index · Forbes: Elon Musk profile
Frequently asked questions
How is net worth calculated?
Net worth equals total assets minus total liabilities. Add up cash, investments, business stakes and property, then subtract mortgages, loans and other debts. The result is a snapshot that changes as asset values move.
How does Forbes calculate net worth?
Forbes values public shares on a set date, values private companies against listed peers with a 10% liquidity discount, adds property and other assets, then deducts known debt and assets given to charity.
Why are Forbes and Bloomberg net worths different?
They value private companies with different assumptions, may see different debts and fix figures on different dates. Forbes uses prices from a set date for each list, while Bloomberg updates every business day after the New York close.
How often is the Bloomberg Billionaires Index updated?
Bloomberg updates each net worth every business day after trading closes in New York. Stakes in listed companies are valued at the most recent closing share price.
Are celebrity net worth figures accurate?
They are estimates. Forbes and Bloomberg explain how they calculate their figures, but private assets and undisclosed debt make exact numbers impossible. Figures without a named source or date are the least reliable.
Does net worth include houses and cars?
Yes. Forbes counts real estate, art, yachts, planes and car collections at estimated market value, then subtracts any mortgages or loans secured against them.
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