Compare interest-bearing borrowings with shareholders’ equity. Enter your own values below. The calculator shows the formula it uses, a graph and a step-by-step explanation of the result.
Also searched as: D/E, debt to equity, gearing, leverage ratio
How the calculation works
Formula
Debt-to-Equity = Total Debt / Total Shareholders’ Equity
For this tool, total debt means interest-bearing short- and long-term borrowings; trade payables and other non-debt liabilities are excluded. A ratio is not reported when equity is zero or negative.
What you enter
- Total interest-bearing debt
- Total shareholders’ equity
- Display currency (formatting only — no exchange-rate conversion)
What the results show
- Debt-to-equity ratio (times)
- Debt proportion of debt plus equity
- Equity proportion of debt plus equity
- Total debt
- Total shareholders’ equity
- Debt plus equity
Results are estimates based only on the values and assumptions you enter. Open the detailed analysis to see the graph, the step-by-step story and the stated assumptions, and use the report menu to print, save as PDF, export a schedule to CSV or share the inputs.
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When to use this calculator
How much debt does the company use relative to equity? Investors and credit analysts can use it to get a quick estimate from their own figures.
Worked example
Total debt of 400,000 and shareholders' equity of 500,000 give a debt-to-equity ratio of 0.80.
Illustrative figures in any currency. Enter your own values in the calculator above.