Leverage: debt vs owners' equity. The Debt-to-Equity Calculator takes total debt, shareholders' equity and returns debt to equity plus as a percentage, debt share of total capital. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Debt-to-Equity Calculator works
How much the business relies on lenders versus owners. Acceptable levels vary widely by industry; above 2 usually means high financial risk for a small business.
Worked example
With the example values (total debt of $600,000, shareholders' equity of $900,000), the debt to equity is 0.67x; as a percentage 66.67%, debt share of total capital 40%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is debt to equity calculated?
debt to equity = total debt ÷ shareholders' equity.
Which figures do I need?
Total debt, shareholders' equity. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
