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Debt-Equity Ratio Calculator
Total Debt ÷ Shareholders' Equity.
Enter values to see your result
Frequently asked questions
What's "good" D/E?
Industry-dependent. Tech <0.5. Manufacturing 0.5–1.5. Banks 10+. Real estate 1–3. High-growth startups near 0 (equity-funded).
Debt is always bad?
No — cheap debt (<10%) invested at >15% ROIC creates value. Problem: debt has mandatory interest; equity doesn't. Too much = fragility.
Book vs market value?
Book is easier (from balance sheet). Market is more accurate (current prices). Large companies — use both; small businesses — book is fine.
D/E for personal finance?
Yes. Personal D/E = (home loan + other loans) / net worth. Stay below 0.5 for comfort; above 1 is risky territory.