Debt to Equity
Free Debt to Equity calculator with clear step-by-step results.
About Debt to Equity
The debt-to-equity ratio measures how much of the capital structure is borrowed.
Formula
Formula
D/E = total debt ÷ equity
Worked example
With the default values below, Debt to Equity returns Debt-to-Equity of 0.50. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Total debtminimum 0 $
- 60,000 $
- Shareholders' equityminimum 0 $
- 120,000 $
Results
- Debt-to-Equity
- 0.50
- Debt Share of Capital
- 33.3%
- Equity Share of Capital
- 66.7%
Step by step
- 1Values used
- 2Formula
- 3Debt-to-Equity= 0.50
- 4Debt Share of Capital= 33.3
- 5Equity Share of Capital= 66.7
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
The debt-to-equity ratio measures how much of the capital structure is borrowed.
Why does this matter?
High leverage can amplify returns and risk alike.
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