Debt Ratio

The Debt Ratio Calculator computes your total liabilities as a percentage of total assets, providing a snapshot of your overall leverage and financial health. A lower ratio indicates stronger financial standing and less vulnerability to income disruptions. Enter your total assets (property, investments, savings, vehicles) and total liabilities (mortgages, loans, credit cards). The gauge shows your debt ratio with interpretive zones: healthy (under 30%), moderate (30-50%), elevated (50-70%), and critical (over 70%). Unlike the debt-to-income ratio which measures cash flow capacity, the debt ratio measures balance sheet health. It answers the question: if you sold everything today, how much would be left after paying all debts? A declining debt ratio over time indicates you are building genuine wealth.