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.