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Tangible Net Worth Calculator

Calculate tangible net worth (TNW) — total assets minus intangible assets minus total liabilities. Enter individual intangible categories (goodwill, patents, trademarks) for a detailed breakdown, then see TNW vs standard net worth comparison bars, intangible share, liability-to-tangible-asset ratio, and an optional lender covenant check.

Enter balance sheet values

Use a preset or enter your own values. Intangible assets can be entered as a single total or broken down by category — either approach works.

🟢 Total assets
📊
All assets from the balance sheet before exclusions
🟡 Intangible assets — remove from TNW
🤝
From acquisitions — most common intangible
🔬
Registered intellectual property
™️
Brand names, logos registered on balance sheet
📁
Customer lists, licences, non-competes, capitalised software
🔴 Total liabilities
📋
All current + long-term liabilities from balance sheet
⚪ Optional — lender covenant check
🏦
From your loan agreement — checks pass/fail

Formula

TNW = Total assets − Intangibles − Total liabilities
Tangible assets = Total assets − Intangibles
Intangible share = Intangibles ÷ Total assets × 100
Liab / tang. assets = Liabilities ÷ Tangible assets

TNW vs net worth

Net worth = Total assets − Liabilities (includes intangibles). TNW removes intangibles first — so it is always ≤ net worth. The gap equals the intangible asset total. For individuals with no recorded intangibles, TNW and net worth are identical.

Tip: when using the lender covenant check, confirm the exact definition in your loan agreement. Some agreements define TNW more broadly — excluding deferred tax assets, related-party receivables, or prepaid expenses in addition to standard intangibles. The definition in the contract governs, not the accounting standard.
This calculator is for educational and planning purposes only. Actual TNW may differ based on accounting policy, impairment charges, classification choices, and lender-specific definitions. Always verify with your accountant and review the specific wording in any loan covenant before relying on this estimate for compliance purposes.

Frequently asked questions

What is tangible net worth?

Tangible net worth is the portion of net worth supported by concrete, realisable assets. It is calculated by removing intangible assets — goodwill, patents, trademarks — from total assets, then subtracting total liabilities. It is always lower than or equal to standard net worth.

What counts as an intangible asset for TNW?

Common intangibles removed from TNW include: goodwill from acquisitions, patents and trade secrets, trademarks and trade names, customer lists, licensing rights, non-compete agreements, and capitalised software. Some lender covenants also exclude deferred tax assets and related-party receivables — always check the specific agreement.

Is TNW the same as shareholders' equity?

No. Shareholders' equity (book net worth) equals total assets minus total liabilities — it includes intangible assets in the asset base. TNW takes an additional step by removing those intangibles, producing a more conservative equity figure.

Can tangible net worth be negative?

Yes — and it can be negative even when standard net worth is positive. This happens when intangible assets (especially large goodwill balances) plus total liabilities exceed total assets. Negative TNW is a significant flag in credit analysis, even if the business appears profitable.

Why do lenders use TNW in debt covenants?

Lenders use TNW covenants because goodwill can be written down overnight in an impairment charge, and intangibles are difficult to liquidate in a default scenario. A TNW covenant ensures the borrower maintains a minimum base of concrete, realisable asset value — independent of acquisition-related intangibles that could disappear quickly.

Related finance calculators

Net Worth Calculator Calculate standard net worth — total assets minus liabilities before the intangible deduction. Total Liabilities Calculator Tally current and long-term liabilities accurately — the input TNW is most sensitive to. Retained Earnings Calculator Retained earnings is the key operational driver of equity growth — and of TNW improvement over time. ARR Calculator Pair TNW analysis with return on capital — a common next step in lender or investor review.

Disclaimer

This calculator is for educational and planning purposes only. It does not provide accounting, lending, valuation, or legal advice. Actual TNW may differ based on reporting rules, impairment charges, classification choices, and lender-specific covenant definitions. Verify with your accountant and review all relevant agreement language before relying on this for compliance.