Equity Multiplier Calculator

LAST UPDATE: September 24th, 2020


Definition – What is the Equity Multiplier?

The equity multiplier is the ratio of total assets to stockholder’s equity.

Formula – How to calculate the Equity Multiplier

Equity Multiplier =  Total Assets / Stockholder’s Equity


A company has total assets of $7,000 and stockholder equity of $1,750.

Equity Multiplier = $7,000 / $1,750 = 4

Therefore, this company has an equity multiplier of 4.000.

Sources and more resources