Debt-to-Equity Calculator
Enter total liabilities and shareholder equity to calculate the debt-to-equity ratio.
Debt-to-Equity Calculator
Calculate the debt-to-equity ratio — a key measure of how much a company relies on debt versus equity to finance its assets.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
The debt-to-equity ratio compares how much a company is financed by debt versus by its owners' equity, a key indicator of financial leverage and risk.
Example
- With the default values shown above, this calculator returns: Debt-to-Equity Ratio ≈ 0.67.
Frequently Asked Questions
What is the formula?
Debt-to-Equity Ratio = Total Liabilities ÷ Shareholder Equity.
What is a good debt-to-equity ratio?
It varies significantly by industry, but a ratio below 1 to 1.5 is often considered conservative, while much higher ratios indicate heavier reliance on debt financing and greater financial risk.