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Debt-to-equity ratio calculator
Enter your total liabilities and shareholders' equity from the balance sheet to see how much of the business is financed by debt.
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How it works
How it works
The ratio is total liabilities divided by shareholders' equity. A higher number means more of the business is financed by debt rather than owner money.
FAQ
About this calculator
What is a good debt-to-equity ratio?
It depends on the industry and the lender. Capital-heavy businesses often carry more debt than service businesses, so compare with similar companies and with your own history.
Where do I find the numbers?
Both are on the balance sheet. Total liabilities is the sum of current and long-term liabilities, and equity is assets minus liabilities.
Can equity be negative?
Yes, when liabilities exceed assets. The ratio is not meaningful then, so the calculator asks for positive equity.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
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