Debt Ratio

Debt Ratio can have two different meanings depending on the whether it is used in the context of a firm (company) or whether it refers to an individual

Debt Asset Ratio for Firms

It is the ratio of a company debt to its assets.

 Debt Ratio = Total Debt/ Total Assests

For example a firm with 5 milliion dollar as assests and a million dollar debt will have a debt ratio of 20%.you may use the calculator below, please input the total debt on the top most input box and total assets in the one below it and click on '=' sign. 

Debt to Income Ratio for individuals

In the case of Individuals it means the ratio of debt relative to their income.

If calculated montly,then Debt to Income Ratio = Monthly Expenses/Monthly income. The  Debt Ratio Calculator , can be used to calcualte your debt ratio.

Experts Recommend that your debt to income ratio should be less than 35% so that, you may continue to be eligible for credit as and when you need it.Debt Ratio is an important factor that is used by mortgage companies to find the loan eligibility of an individual.