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Debt-to-Asset Ratio Calculator
Your debt-to-asset ratio compares everything you owe to everything you own. A lower ratio means better financial health and stronger borrowing power. Lenders prefer ratios below 0.4.
How to Use This Tool
- Enter total assets (home value, investments, savings, vehicles).
- Enter total debt (mortgages, loans, credit cards, lines of credit).
- Click Calculate to see your ratio and health rating.
The Formula
Debt-to-Asset Ratio = Total Debt / Total Assets. Lower is better: <0.4 Excellent, 0.4-0.6 Good, 0.6-0.8 Fair, >0.8 High Risk.
Why It Matters
You own a $400,000 home (minus $250,000 mortgage), $50,000 in investments, $30,000 in savings, and $20,000 in car value — giving you $250,000 total assets against $80,000 in debt. Your 0.32 ratio is 'Excellent' — positioning you well for favorable loan terms on a new mortgage or personal line of credit.
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