# Debt-to-Capital Ratio Calculator

URL: https://speedycalculator.com/calculators/finance/debt-to-capital/
Last updated: 2026-10-25

> The debt-to-capital ratio calculator works out the share of a company's capital (interest-bearing debt plus shareholders' equity) that comes from debt.

## Inputs

- Interest-bearing debt
- Shareholders' equity

## Results

- Debt to capital ratio
- As a percentage
- Debt to equity ratio

## Formula

```
Debt-to-capital = interest-bearing debt ÷ (interest-bearing debt + shareholders' equity)
```

## Explanation

This ratio is a common leverage measure in credit analysis and loan covenants. Values above about 0.6 indicate high leverage for most industries.

### How to use the Debt-to-Capital Ratio Calculator

- **Interest-bearing debt**
- **Shareholders' equity**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter interest-bearing debt and shareholders' equity.

### Tips

- Check whether rates are quoted annually, semi-annually or per period.
- Bond prices and yields move in opposite directions – a higher yield means a lower price.
- Use the bond's clean price (without accrued interest) for yield calculations.
- Credit ratios are most useful when tracked over several years.

### Common mistakes to avoid

- Confusing the coupon rate with the yield.
- Using the face value instead of the market price.
- Forgetting that callable bonds may be redeemed before maturity.

### Inputs explained

FieldWhat to enterInterest-bearing debtAmount in your currencyShareholders' equityAmount in your currency

### What each result means

- **Debt to capital ratio** = [Interest-bearing debt]÷([Interest-bearing debt] + [Shareholders' equity])
- **As a percentage** = [Debt to capital ratio]×100
- **Debt to equity ratio** = [Interest-bearing debt]÷[Shareholders' equity]

### Example values

How the main result changes when **Interest-bearing debt** changes and everything else stays at the example values above:

Interest-bearing debtDebt to capital ratio200,0000.25300,0000.333400,0000.4500,0000.455600,0000.5800,0000.571

## Worked example

Inputs — Interest-bearing debt: $400,000; Shareholders' equity: $600,000.

Results — **Debt to capital ratio = 0.4**; As a percentage = 40 %; Debt to equity ratio = 0.67.

## FAQ

**What is a good debt-to-capital ratio?**
Below 0.5 is generally comfortable.

**What counts as debt?**
Short- and long-term interest-bearing debt, including leases.

**How is it related to D/E?**
D/C = D/E ÷ (1 + D/E).

**What formula does the Debt-to-Capital Ratio Calculator use?**
Debt-to-capital = interest-bearing debt ÷ (interest-bearing debt + shareholders' equity).


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)