Reference formulas and worked examples below keep their stated units. Monetary examples use USD; dimensional examples use US customary units unless labeled otherwise. Metric calculator inputs are converted to these reference units before calculation. Choosing another currency does not convert example amounts or exchange money.
How to use this debt ratio calculator
Use balance-sheet amounts from one date. Enter totals or subtotals, or hold assets or liabilities fixed to solve for the other at your chosen target ratio.
How the calculation works
With fixed assets, liabilities at a target ratio = assets × target percent / 100. With fixed positive liabilities, required assets = liabilities / (target percent / 100). Asset subtotals are current plus non-current assets. These are algebraic scenarios and do not predict balance-sheet changes.
This page defines debt ratio as total liabilities ÷ total assets. Multiply the result by 100 to express it as a percentage. Total assets must be greater than zero.
In breakdown mode, total liabilities = current liabilities + long-term liabilities. Keep the reporting date and accounting basis consistent, and do not count the current portion of long-term debt twice.
Balance-sheet equity = assets − liabilities. Equity share = equity ÷ assets × 100. A negative equity result is retained rather than being replaced with zero.
Some analyses define debt more narrowly as interest-bearing borrowing. Check the definition used by your lender or report before comparing results. A personal debt-to-income ratio uses monthly payments and income instead; use the dedicated tool for that task.
Worked example
With assets of USD 300,000 and liabilities of USD 200,000, the debt ratio is 200,000 ÷ 300,000 = 0.6667, or 66.67%. Equity is USD 100,000, representing 33.33% of assets.
Limits and assumptions
Uses the entered total-liabilities definition and balance-sheet values. It does not value assets, assess liquidity, set lending criteria, or measure monthly debt affordability. Accounting policies and industries affect comparisons.
Frequently asked questions
Can I work backward from a target debt ratio?
Yes. Choose which quantity to find. Assets 100,000 at 40% allow liabilities 40,000; fixed liabilities 50,000 at 40% require assets 125,000. The fixed input is never silently overwritten.
Is debt ratio the same as debt-to-income?
No. Debt-to-assets compares balance-sheet balances. Debt-to-income compares recurring monthly debt payments with gross monthly income.
Where do I find the inputs?
Use the total assets and total liabilities lines on the same balance sheet. Breakdown mode accepts its current and non-current liabilities subtotals.
Can debt ratio be over 100%?
Yes. Liabilities then exceed the entered assets, and the equity calculation becomes negative.
What if there is no debt?
Zero liabilities with positive assets gives a zero debt ratio. Zero assets would make the ratio undefined and is not accepted.