Net Worth & Balance Sheet Calculator
Calculate your net worth and generate a professional balance sheet for your proprietorship — in the standard Indian format accepted by banks and tax authorities. Privacy-first: all data stays in your browser.
🏢 Business Details
🏭 Fixed Assets (WDV Method)
Enter original cost, accumulated depreciation till previous year, additions during the year, and IT Act rate. Net WDV is computed automatically.
📋 Business Current Assets
📈 Investments
🏦 Cash & Bank Balances
🏠 Personal Assets
What this tool does — and what it cannot do
This calculator generates a balance sheet in the standard Indian double-entry format, with liabilities on the left and assets on the right. For proprietorships, it includes the capital account section, per-asset WDV depreciation using Income Tax Act rates, and a live balance-check bar that tells you whether your books actually balance.
It does not verify your depreciation computation against your actual block-of-assets records. It does not compute your net profit from turnover and expenses: you must enter that manually from your Profit & Loss account. It is not a substitute for a Chartered Accountant's certification, which banks require for loans above approximately ₹10 lakh.
What is a proprietorship balance sheet?
A proprietorship balance sheet is a statement of the financial position of a business owned by a single individual. Unlike a company, a proprietorship has no separate legal identity from its owner — but for accounting and tax purposes, the business is treated as a distinct entity. The balance sheet shows what the business owns (assets), what it owes to outsiders (liabilities), and what it owes to the owner (capital).
The fundamental equation is: Assets = Capital + Liabilities. If the two sides do not match, there is an error in your entries. The calculator's balance-check bar highlights this in real time.
The capital account is the section proprietors confuse most. It is not an asset: it is a liability of the business to its owner. It represents the owner's claim on the business. When the owner puts money in, capital increases. When the owner takes money out as drawings, capital decreases. When the business makes a profit, capital increases. This is why it sits on the Liabilities side.
Capital account: the concept proprietors confuse most
The capital account tracks the owner's net investment in the business over time. It has three moving parts:
- Opening capital: The closing capital from last year's balance sheet. This is your starting point.
- Net profit (or loss): The surplus from this year's operations, taken from your Profit & Loss account. Add profit, subtract loss.
- Drawings: Any money the owner took out for personal use — not salary, not business expense, personal withdrawal. This reduces capital.
Closing capital = Opening capital + Net profit − Drawings
If you do not have last year's balance sheet, your opening capital is the total you have invested in the business since inception, minus all drawings taken till the start of this year. Many proprietors skip this step and end up with a balance sheet that does not balance — which is why the calculator shows the difference explicitly.
When is a balance sheet mandatory for proprietors in India?
| Situation | Balance sheet required? | Notes |
|---|---|---|
| Filing ITR-3 (normal business income) | Yes | Must be filed with the return |
| Filing ITR-4 (presumptive 44AD/44ADA) | No | Presumptive taxation does not require a balance sheet |
| Tax audit under Section 44AB | Yes | Audited balance sheet + P&L required |
| Business turnover > ₹1 crore | Yes (audit) | Threshold raised to ₹10 crore if 95%+ digital transactions |
| Professional income > ₹50 lakh | Yes (audit) | Doctors, lawyers, architects, CAs, etc. |
| Applying for bank loan | Usually yes | Self-prepared accepted for small loans; CA-certified for large |
| GST registration | No | But lenders may ask for it with MSME loans |
Balance sheet for bank loans: what banks actually want
Banks do not care about your accounting philosophy. They care about three things: (1) does the business generate enough cash to service the loan, (2) is the owner's net worth sufficient to absorb a downturn, and (3) are the numbers credible.
For loans below ₹10 lakh, most banks accept a self-prepared balance sheet with a self-declaration. For home loans above ₹20 lakh, business loans, or MSME working capital, they almost always require a CA-certified balance sheet for the last 2–3 years, plus audited P&L and ITR acknowledgements.
What banks look for in your balance sheet:
- Positive and growing capital: Declining capital signals the owner is draining the business.
- Reasonable debt-to-asset ratio: Secured loans should not exceed 60–70% of fixed assets.
- Liquid current assets: Closing stock and debtors should be realisable, not stale.
- Consistent depreciation: Wildly varying depreciation rates between years raise red flags.
- Matching ITR turnover: If your balance sheet shows ₹50 lakh stock but your ITR shows ₹30 lakh turnover, the bank will ask questions.
How to use this calculator: step by step
- Choose your mode. Use "Proprietorship Balance Sheet" for business filing. Use "Personal Net Worth" for a simple assets-minus-liabilities snapshot.
- Fill in your details. Firm name, PAN, and balance sheet date appear in the generated document header.
- Enter fixed assets. For each asset, enter original cost, prior accumulated depreciation, additions during the year, and the IT Act rate. Net WDV computes automatically.
- Enter investments and cash. Mutual funds, shares, FDs, PPF, EPF, NPS, LIC surrender value, and all bank balances.
- Enter business current assets. Closing stock, debtors, advances given, prepaid expenses.
- Switch to Liabilities tab. Enter opening capital, net profit from your P&L, and drawings. Closing capital computes automatically.
- Enter all loans. Secured, unsecured, personal. Enter current liabilities: creditors, TDS payable, GST payable.
- Review the Balance Sheet tab. The balance-check bar confirms whether Assets = Capital + Liabilities. Download as PDF or copy as text.
Real estate valuation: how to estimate for your balance sheet
Real estate is usually the largest line item in a personal or proprietorship balance sheet, and also the most uncertain. For an internal net worth snapshot, use your best estimate of current market value based on recent transactions in your area, circle rates, or online property portals.
For a balance sheet you intend to submit to a bank, use the lower of: (a) registered valuer's assessment, or (b) circle rate / guidance value. Banks are conservative and will not accept optimistic estimates. If you bought the property more than 5 years ago, the original purchase price is almost certainly too low and will understate your net worth.
Frequently Asked Questions
Do proprietors need to file a balance sheet with their income tax return?
Yes, if you are filing ITR-3 (business or profession income under normal taxation) or have been subject to tax audit under Section 44AB, you must file a balance sheet. If you file ITR-4 (presumptive income under Sections 44AD/44ADA), a balance sheet is not mandatory — but banks almost always ask for one when you apply for a loan.
What is the capital account in a proprietorship balance sheet?
The capital account is the owner's net investment in the business. It starts with last year's closing capital, adds the net profit earned during the year, and deducts any drawings (money taken out by the owner for personal use). Closing capital = Opening capital + Net profit − Drawings. It appears on the Liabilities side of the balance sheet because it represents what the business "owes" to its owner.
Is a self-prepared balance sheet accepted by banks for loans?
For loans below approximately ₹10 lakh, many banks accept a self-prepared and self-certified balance sheet. For larger loans — particularly business loans, home loans above ₹20 lakh, or MSME loans — banks require a CA-certified balance sheet, often accompanied by audited accounts for the last 2–3 years. Confirm the specific requirement with your lending bank before submitting.
What depreciation rate should I use for my assets?
Use the rates prescribed under the Income Tax Act (WDV method): Plant & Machinery — 15%; Computers & Software — 40%; Motor Cars — 15%; Furniture & Fixtures — 10%; Buildings — 5–10% depending on type. These are the rates most commonly accepted by banks and for ITR purposes. The Companies Act rates (SLM method) are different and apply only to registered companies, not proprietorships.
What is the difference between net worth and capital in a proprietorship?
In a proprietorship, they are essentially the same: capital = net worth (assets minus liabilities from the business perspective). The difference is framing — "capital account" is the balance sheet term (appearing on the Liabilities side) while "net worth" is the personal finance term. If you include personal assets and personal liabilities beyond the business, your personal net worth may be different from your business capital account.
Why does this calculator put the capital account on the Liabilities side?
This follows the standard Indian double-entry accounting convention for proprietorships. The business is treated as a separate entity from the owner — so the money the owner has invested in the business is a "liability" of the business to its owner. This is the correct format for banks, income tax authorities, and CAs.
How do I value my real estate for the balance sheet?
For a balance sheet submitted to a bank, use the property's market value (as assessed by a registered valuer or as per the circle rate, whichever is lower — ask your bank). For an internal net worth snapshot, use your best estimate of the current market price. Do not use the original purchase price — it understates your real net worth significantly, especially for property bought more than 5 years ago.
Do I need a CA to prepare a proprietorship balance sheet?
Not for informal purposes or for your own understanding. For ITR filing, a CA is required only if your turnover exceeds the tax audit threshold (₹1 crore for business, ₹50 lakh for professionals — higher limits apply if using presumptive taxation). For bank loans above a lender-specific threshold (typically ₹10–25 lakh), lenders require CA certification.
What is the tax audit threshold for proprietors in 2026?
Under Section 44AB, a proprietor with business turnover exceeding ₹1 crore must get accounts audited. However, if more than 95% of receipts and payments are digital (bank transfers, cards), the threshold is raised to ₹10 crore. For professionals (doctors, lawyers, architects, CAs, etc.), the threshold is ₹50 lakh. Under presumptive taxation (44AD/44ADA), you may avoid audit if you declare income at the prescribed percentage.
Can I use this balance sheet for GST registration?
GST registration itself does not require a balance sheet. However, if you apply for a GST-backed MSME loan or a working capital facility, lenders may ask for it alongside your GSTR-2A reconciliation statement. A self-prepared balance sheet is generally acceptable for these purposes, but always confirm with the lender.
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