Use this free debt ratios calculator to estimate debt ratio, debt-to-equity ratio, and times interest earned from debt, assets, equity, EBIT, and interest expense.
$220,000 debt / $500,000 assets
Debt ratios need context such as industry, maturity dates, cash flow quality, lease obligations, and interest-rate changes.
Measure how much of a business is financed with debt.
Compare debt-to-equity with the company capital structure.
Check a simple interest coverage ratio.
Use alongside liquidity and profitability ratios for a fuller picture.
Debt ratio and coverage
Leverage and interest coverage
Lower debt ratio
Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it for early planning and side-by-side comparisons, especially for tasks like these: Measure how much of a business is financed with debt. Compare debt-to-equity with the company capital structure. Treat the answer as a planning estimate, not a final quote.
Total debt means interest-bearing debt or debt-like obligations you want included in the ratio. Total assets and equity means balance sheet totals used to compare debt with company resources and owner value. EBIT and interest expense means earnings before interest and tax compared with interest cost for a basic coverage check.
In plain language: The calculator divides debt by assets for debt ratio, debt by equity for debt-to-equity, and EBIT by interest expense for times interest earned. If the result seems too high or too low, first check whether each field expects a monthly amount, annual amount, dollar value, or percent.
Read the main answer first, then use the supporting lines to see why the answer moved. For finance calculators, the extra lines often explain interest, tax, fees, principal, payment timing, or totals paid over time. Those pieces matter because two results can look close at first but cost very different amounts later.
This does not include lease classification, debt maturity timing, refinancing risk, cash flow quality, covenant rules, credit rating methods, taxes, or investment advice. Real finance decisions can also depend on fees, timing, local rules, credit details, and provider-specific terms.
Check the rate, time period, compounding or payment frequency, and whether the value is before tax or after tax. A common mistake is mixing monthly and yearly numbers, which can make a finance answer look believable even when it is off by a lot.
Times interest earned compares EBIT with interest expense. A result of 6x means EBIT is six times the interest expense entered. It is a rough coverage check, not a cash-flow promise.
It depends on the industry and business model. Some stable asset-heavy businesses use more debt. Young or risky businesses may need less debt because cash flow is less predictable.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.