Debt to Equity Ratio Calculator
The debt to equity ratio compares what a business owes with what its owners have put in and kept. It is one of the simplest ways to see how much of the business is paid for with borrowed money.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Divide total debt by owner's equity. A ratio of 1 means debt and equity are equal. The share line shows debt as a percent of all the money used to fund the business.
Worked example
With $150,000.00 of debt and $250,000.00 of equity, the ratio is 0.6. Debt makes up 37.5% of the money used to fund the business.
Questions
What is a good debt to equity ratio?
It varies a lot by industry. Some sectors carry heavy debt as normal, so compare with businesses like yours rather than a single number.
What counts as debt?
Loans, lines of credit and bonds usually count. Some people also include leases. Use the same rule each time you check.
Where do I find these numbers?
Both are on your balance sheet, which your accountant or bookkeeping software can produce.
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