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Your total debt divided by your total assets — a measure of leverage.
The debt-to-asset ratio shows what fraction of everything you own is financed by debt. A lower ratio means more of your assets are truly yours. Under 50% is generally comfortable; a very high ratio leaves little cushion if asset values fall.
$150,000 of debt against $500,000 of assets is a 30% debt-to-asset ratio.
Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →