Example
Assets: home $300,000 + savings $20,000 + 401(k) $60,000 + car $15,000 = $395,000. Debts: mortgage $240,000 + car loan $9,000 + student loan $18,000 = $267,000.
Debt-to-asset ratio = $267,000 ÷ $395,000 × 100 = 67.6% — high, mostly because the mortgage is young. Net worth is $128,000.
How to read it
| Ratio | What it usually means |
|---|---|
| Under 30% | Low — most of what you own is yours. |
| 30% – 60% | Moderate — typical with a mortgage. |
| 60% – 100% | High — debts are a big share of your assets. |
| Over 100% | You owe more than you own (negative net worth). |
The ratio falls two ways at once as you pay off debt: debts shrink and, as payments free up money to save, assets grow. Work out yours with the net worth calculator. Summit tracks it monthly next to your net worth, and Zero plans the debt payoff that brings it down.
Frequently asked questions
What is a good debt-to-asset ratio for a person?
Is it the same as the debt-to-income ratio?
How do I lower my debt-to-asset ratio?
Written by
Finance Specialist & Editor, VaultlyApps
Researched against primary US sources and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
