Enter your total debt and total assets into the debt to asset ratio calculator. The calculator will return the % debt to assets ratio.

## Debt to Asset Ratio Formula

The following formula can be used to calculate the debt to asset ratio.

D:A = D/A*100

- Where D:A is the debt to asset ratio (%)
- D is the total debts
- A is the total assets

How to calculate a debt to asset ratio

**First, calculate your total debts**This will include all types of debts including long-term and short-term. This could be things like leases, mortgages, or loans.

**Next, calculate your total assets**This will include any and all assets you own that have value. This could be anything from homes to vehicles to investments.

**Finally, calculate the ratio**Enter your total debts and assets into the formula above to calculate your debt to asset ratio.

## FAQ

**What is a debt to asset ratio?**

A debt to asset ratio is a ratio that measure how much debt a person on business as compared to how many assets that person has. The greater the ratio the worse financial standing that person or company is in.

**What is a good debt to asset ratio?**

This depends on whether we are talking about a person or business. For business, while not ideal, it’s not uncommon for them to have much greater than 100% debt to asset ratio. For a person, this ratio should always be below 100%, and preferably below 25%.

**How much debt is too much?**

For a person, that simple answer is as soon as you can no longer pay the debts.

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