Finance CalculatorsBusiness FinanceFree Tool
Equity Ratio Calculator
Calculate your equity ratio - shareholders' equity divided by total assets - to see what portion of assets are funded by equity rather than debt.
How to Use Equity Ratio Calculator
- 1Enter your shareholders' equity
- 2Enter your total assets
- 3Click Calculate to see your equity ratio
Frequently Asked Questions
Equity Ratio = Shareholders' Equity divided by Total Assets, expressed as a percentage.
This calculator flags 50% or above as low-risk and equity-dominant, 30% or above as moderate leverage, and below 30% as debt-heavy with higher financial risk - a higher ratio means more of your assets are funded by equity rather than borrowed money.
They describe the same capital structure from different angles - Equity Ratio compares equity to total assets, while Debt to Equity compares debt directly to equity. A low equity ratio typically corresponds to a high D/E ratio.
Not necessarily - some debt can be a cost-effective way to fund growth (tax-deductible interest, leverage on returns). This calculator only reports the ratio and a general risk band, not a recommendation on optimal capital structure for your business.
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