Accounting Share · Financial ratios

Equity Ratio Calculator

Measure the proportion of assets represented by equity. Under the basic accounting equation, it complements a total-liabilities-to-assets ratio.

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03 / Understand the method

Formula and method

Total equity ÷ Total assets × 100

Measure the proportion of assets represented by equity. Under the basic accounting equation, it complements a total-liabilities-to-assets ratio.

How to use this calculator

  1. Collect the figures for the same entity, currency and reporting period.
  2. Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
  3. Choose Calculate, inspect the breakdown and compare the result with your assumptions.
  4. Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.

Inputs at a glance

  • Total equity: May be positive, zero or negative; the sign changes its effect in the displayed formula.
  • Total assets: A nonnegative numeric input in the units specified by the label.

Worked example

Follow one calculation.

Total equity
100000
Total assets
250000
Calculated result
40%

Load this example in the interactive form to inspect the intermediate amounts.

Assumptions and interpretation

Negative equity gives a negative ratio. Book equity is not the market value of the company.

The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.

Questions about this tool

What does the equity ratio calculation measure?

Measure the proportion of assets represented by equity. Under the basic accounting equation, it complements a total-liabilities-to-assets ratio.

Which assumptions can change the result?

Negative equity gives a negative ratio. Book equity is not the market value of the company.

Why can displayed totals differ slightly from my spreadsheet?

Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.

Reference and further learning

Financial accounting reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.

Look up an accounting term · Practise with accounting questions

Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.

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