How does the Debt Ratio Calculator work?

Get total liabilities (all short-term and long-term debt) Then: Get total assets from the balance sheet Then: Debt ratio = Total liabilities / Total assets Then: Debt-to-equity ratio = Total debt / Shareholders' equity (a related metric).

Can you give an example of how to use the Debt Ratio Calculator?

Example: Input Liabilities £600k · Assets £1M gives a result of Debt ratio = 0.6 (60%) (60 cents of debt per £1 of assets).

Is the Debt Ratio Calculator free to use?

Yes — completely free with no registration, download, or subscription required. All calculations happen instantly in your browser.

How accurate is the Debt Ratio Calculator?

Our Debt Ratio Calculator uses verified mathematical formulas and is accurate to multiple decimal places. Results are calculated in real-time using the same methods used by professionals.

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Debt Ratio Calculator

Total debt

Total assets

The debt ratio measures what proportion of a company's assets are financed by debt. Debt ratio = Total liabilities / Total assets. A ratio above 0.5 means more than half the assets are debt-financed.

Debt ratio	Interpretation
< 0.3	Conservative — low leverage
0.3–0.5	Moderate — healthy for most industries
0.5–0.7	High — acceptable for capital-intensive industries
> 0.7	Very high — elevated default risk

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Did You Know?

Capital-intensive industries like airlines and utilities comfortably operate at debt ratios of 0.7–0.8 because their asset base (planes, power plants) is large and stable.

References

›Debt ratio — Investopedia

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Debt ratio interpretation

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