Compare total liabilities with shareholders’ equity.
Please do not make financial decisions based on these results.
What is the Debt to Equity Calculator?
Compare total liabilities with shareholders’ equity. To use the Debt to Equity Calculator, enter total liabilities, shareholders’ equity; it returns debt to equity, equity multiplier, and shows them instantly as you type.
Where the Debt to Equity Calculator fits
Compare total liabilities with shareholders’ equity. The main figure it returns is the Debt to equity, worked out from the values you enter.
It belongs with the other bonds & credit ratios tools. If you are comparing options or checking a result from another angle, try the Debt-to-Capital Ratio Calculator, After-tax Cost of Debt Calculator or the Debt Service Coverage Ratio Calculator (DSCR).
How to use the Debt to Equity Calculator
- Fill in the fields. You will need Total liabilities ($), Shareholders’ equity ($). Take the price, coupon and maturity from the bond’s listing. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Debt to equity, and the cards below show Equity multiplier. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Debt to Equity Calculator using the default values shown in the calculator above:
Inputs
| Total liabilities ($) | 4,000,000 |
|---|---|
| Shareholders’ equity ($) | 3,000,000 |
Results
| Debt to equity | 1.33 |
|---|---|
| Equity multiplier | 2.33× |
With these inputs the calculator returns Debt to equity: 1.33. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Total liabilities ($) from 4,000,000 to 4,800,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Debt to equity | 1.33 | 1.6 | +20% |
| Equity multiplier | 2.33× | 2.6× | +11.4% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Debt to Equity Calculator reports Debt to equity and equity multiplier. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What D/E ratio is normal?
It varies by sector; 1 to 2 is common for many non-financial firms.
What do solvency ratios tell me?
Ratios such as debt to equity, interest coverage and the Altman Z-score show how safely a company can meet its debts.
Why do bond prices fall when rates rise?
New bonds pay the higher rate, so older, lower-coupon bonds must sell at a discount to match the market yield.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related bonds & credit ratios calculators
- Debt-to-Capital Ratio Calculator
- After-tax Cost of Debt Calculator
- Debt Service Coverage Ratio Calculator (DSCR)
- Debt to Asset Ratio Calculator
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- Tax Equivalent Yield Calculator
- Altman Z-Score Calculator
- Bond Price Calculator
- Bond Current Yield Calculator
- Bond Yield Calculator
- Bond YTM Calculator
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