# Debt to Equity Ratio Calculator (D/E)

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

> The debt to equity ratio calculator divides total liabilities (or total debt) by shareholders' equity to measure financial leverage – how much a company relies on borrowing versus owners' money.

## Inputs

- Total liabilities
- Total shareholders' equity

## Results

- Debt to equity ratio
- Debt ratio
- Equity multiplier

## Formula

```
D/E = total liabilities ÷ shareholders' equity
Debt ratio = liabilities ÷ (liabilities + equity)
```

## Explanation

A D/E of 1 means creditors and owners finance the business equally. Capital-intensive industries such as utilities often run 1–2; software companies often below 0.5. Very high D/E increases bankruptcy risk.

### How to use the Debt to Equity Ratio Calculator

- **Total liabilities**
- **Total shareholders' equity**

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

### How it works

Enter total liabilities (or total debt) and total 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 enterTotal liabilitiesAmount in your currencyTotal shareholders' equityAmount in your currency

### What each result means

- **Debt to equity ratio** = [Total liabilities]÷[Total shareholders' equity]
- **Debt ratio** = [Total liabilities]÷([Total liabilities] + [Total shareholders' equity])×100
- **Equity multiplier** = ([Total liabilities] + [Total shareholders' equity])÷[Total shareholders' equity]

### Example values

How the main result changes when **Total liabilities** changes and everything else stays at the example values above:

Total liabilitiesDebt to equity ratio600,0000.75900,0001.131,200,0001.51,500,0001.881,800,0002.252,400,0003

## Worked example

Inputs — Total liabilities: $1,200,000; Total shareholders' equity: $800,000.

Results — **Debt to equity ratio = 1.5**; Debt ratio = 60 %; Equity multiplier = 2.5 ×.

## FAQ

**What is a good debt to equity ratio?**
Often 1–1.5 or lower, depending on the industry.

**Can D/E be negative?**
Yes, if equity is negative – a sign of financial distress.

**Should I use total debt or total liabilities?**
Analysts use both; state which you use.

**What formula does the Debt to Equity Ratio Calculator use?**
D/E = total liabilities ÷ shareholders' equity.


## Sources

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