“The 1%” is a common phrase used to describe the wealthiest Americans. But what does that mean exactly? And what does it take to be part of it?
Understanding what it means to be in the top 1% by net worth can help put your own financial picture into perspective and highlight the stark differences in wealth across the United States.
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“The 1%” refers to the wealthiest households in the U.S. — specifically, the 1% of households with the highest net worths.
Net worth is the value of everything you own minus any debts. Focusing on net worth rather than income alone is important because income only measures money flowing in, while net worth captures the wealth you’ve built over time.
For instance, someone may earn a large salary but carry so much debt that their net worth is relatively low. On the other hand, a retiree with modest income may have millions in assets, putting them closer to the top 1%.
According to the latest data from the Federal Reserve Bank of St. Louis, there are about 132.6 million households in the U.S. This means the top 1% includes about 1.3 million households.
Additionally, as of the first quarter of 2025, the top 1% hold roughly 30.8% of wealth in the U.S., or $49.4 trillion, making the average net worth of a household in the top 1% about $38 million.
However, the median net worth of 1% households is estimated to be closer to $13 million; the average is much higher due to the ultra-wealthy skewing results upward.
As you might expect, certain traits unite households within the top 1% of net worth in the U.S. For example, the richest Americans own more stocks, allowing them to grow their wealth without directly working for every dollar. In fact, the 1% own half of all corporate equities and mutual funds in the U.S., according to the St. Louis Federal Reserve.
Additionally, many of the wealthiest households have received an inheritance and/or own a business.
Economists often use the 1% as a benchmark to highlight income inequality and wealth distribution in the U.S. Because the wealthiest households hold such a large share of total wealth, belonging to this group signals access to resources and opportunities that most people don’t have.
Read more: This map highlights the average net worth in every state
According to the Federal Reserve’s most recent Survey of Consumer Finances, the median U.S. household net worth is about $192,900. That means the median net worth of the top 1% is about 67 times higher than that of the typical American.
Read more: What is the average net worth by age?
If you’re curious about how your own net worth compares, you can calculate it with a couple of quick steps:
Add up your assets. Assets are what you own. These might include any deposit accounts, stocks, bonds, cash, retirement accounts, home equity, and valuable items you have.
Add up your liabilities. Liabilities are what you owe, such as student loans, car loans, personal loans, your mortgage, and any credit card debt.
Find the difference. Subtract your total liabilities from your total assets, and the difference is your net worth.
If you calculate your net worth and find it’s much lower than the top 1% net worth — or even the national median net worth — try not to worry. It’s easy to get caught up in the staggering numbers tied to the 1%, but remember: Building wealth isn’t about chasing someone else’s benchmark. What matters most is making steady progress toward your own goals.
Instead, shift your focus to steadily increasing your net worth through consistent saving and investing. By focusing on what you can control and celebrating the milestones along the way, you’ll create your own version of financial success.
Read more: This is the minimum amount of savings you need to improve your financial well-being
