Debt-to-Asset Ratio
Your debt-to-asset ratio shows how much of what you own is financed by debt.
It compares:
What you owe (loans, credit cards, mortgages)
toWhat you own (cash, investments, property, business assets)
It answers a simple question:
How much of my financial life is built on borrowed money?
The Simple Formula
Debt-to-Asset Ratio = Total Liabilities ÷ Total Assets
If you own $500,000 in assets and owe $200,000:
$200,000 ÷ $500,000 = 0.40 (40%)
That means:
40% of what you own is financed with debt
60% belongs to you outright (your equity)
Why Debt-to-Asset Ratio Matters
This ratio helps you understand your overall financial stability.
A lower ratio means you rely less on debt.
A higher ratio means more of your assets are financed by borrowing.
Lenders and financial institutions often look at this number to assess risk.
For individuals and business owners, it’s a helpful snapshot of long-term financial health.
How It’s Different from Net Worth
Net worth shows:
Assets – Liabilities = What you own outright.
Debt-to-asset ratio shows:
Liabilities ÷ Assets = How leveraged you are.
Both use the same numbers — but they tell different stories.
Where to Find It in Simplifi & Quicken Business & Personal
You can see the information used to calculate this ratio in the Net Worth view.
The Net Worth view shows:
Total Assets
Total Liabilities
Your overall financial position
From those totals, you can quickly understand your debt-to-asset ratio.
What’s a “Good” Ratio?
There isn’t one universal number, but generally:
Under 30% → Lower financial risk
30–60% → Moderate leverage
Over 60% → Higher reliance on debt
Context matters. A homeowner with a mortgage or a growing business may naturally have a higher ratio.
The goal isn’t zero debt — it’s sustainable, manageable debt.