### How to Calculate Net Asset Value

The net asset value (NAV) formula is widely used in calculating a mutual fund's value per share.

Formula:
Net asset value = total assets – intangible assets – total liabilities
Net asset value per share = NAV / total outstanding shares

Learn how to calculate net asset value with the following examples:

Example 1:
If the net assets of a fund are \$10 million, and the fund holds 2 million shares. Then, the NAV per share = \$5 (\$10 million / 2 million).

Example 2:
YTC Corporation has total assets of \$3,500,000 (including intangible asset \$500,000) and total liabilities of \$1,000,000. The calculation for net asset value of ABC corporation is as follows:

NAV = total assets – intangible assets – total liabilities = 3,500,000 - \$500,000 - \$1,000,000 = \$2,000,000

Example 3:
A mutual fund has total assets of \$2,800,000, liabilities of \$800,000, and 200,000 outstanding shares. Then, the NAV per share = (2,800,000 - 800,000) / 200,000 = \$10

* Next: Return on Net Assets (RONA) Ratio Analysis