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Debt Ratio calculator
The debt ratio compares what you owe with what you own, showing how leveraged you are.
Debt-to-Asset Analyzer
Advanced solvency metrics and credit risk assessment
Liabilities (Debt)
$
$
Equity (Assets)
$
$
Solvency Ratio
0.0
Low Risk
Net Equity Position
$0
Total Debt Exposure
$0
Leverage Multiplier
0.0x
The debt ratio answers a simple solvency question: what share of everything you own is claimed by what you owe? This calculator takes your total debts and total assets and gives the ratio, plus what the number means in practice.
How to use this calculator
- Add up your total debts: loans, cards, mortgage balance and other obligations.
- Add up your total assets: property, savings, investments and other valuables.
- Press calculate to see the ratio as a decimal and a percentage.
How to read the result
Below 0.5, debts claim less than half your asset value — generally comfortable. Approaching 1.0 means debts nearly equal assets, leaving little cushion. Above 1.0, you owe more than you own. Businesses are judged by the same ratio when lenders review them.
Frequently asked questions
What is a good debt ratio?
For households, below 0.5 is generally healthy. For companies it varies by industry; lenders often look for below 0.6 to 0.7. Lower is safer, though some debt used for growing assets is normal.
Is debt ratio the same as debt-to-income?
No. Debt ratio compares debts to assets (a snapshot of what you own and owe). Debt-to-income compares monthly debt payments to monthly income. Both are used by lenders.
How can I improve my debt ratio?
Either side works: pay debts down, or build assets. Paying a debt with cash leaves the ratio roughly unchanged in assets but lowers debts, so it improves steadily as balances fall.