⚖️ Balance Sheet Calculator
A balance sheet is the simplest honest picture of any business — or any household. On one side, everything owned; on the other, everything owed; and the difference is the net worth, called equity in a business.
Enter your assets and liabilities below, grouped the way accountants group them: current (within a year) and long-term. The calculator totals each side, works out your equity so the sheet balances, and adds the two health checks lenders look at first — working capital and the current ratio.
How to use this calculator
Enter what is owned and what is owed, then press Calculate.
- List current assets: cash, money owed to you, stock, and anything else usable within a year.
- List long-term assets: property, vehicles and equipment.
- List current liabilities (due within a year) and long-term liabilities such as mortgages and loans.
- Press Calculate to see both totals, your net worth, working capital and the current ratio.
The Equation That Always Balances
Every balance sheet obeys one rule: Assets = Liabilities + Equity. If the two sides do not match, a number is wrong somewhere — which is why this calculator derives equity from your assets and liabilities instead of asking you for it. A positive, growing equity means the business (or household) owns more of itself each year; negative equity means debts exceed everything owned.
Beyond the totals, two ratios matter day to day. Working capital (current assets minus current liabilities) is the cushion that pays this season's bills. The current ratio divides the same two figures: above 1 means short-term bills are covered on paper, while lenders often like to see 1.5–2. The debt ratio shows what share of everything is funded by borrowing — the higher it climbs, the more of each month's income is already spoken for.
Frequently asked questions
What is a balance sheet in simple words?
A snapshot, on one date, of what you own (assets), what you owe (liabilities), and the difference (equity or net worth). Unlike a profit-and-loss report, which covers a period, a balance sheet describes a single moment.
What is the difference between current and long-term?
Current items turn into cash — or fall due — within a year: bank balances, stock and supplier bills are current. Long-term items last longer: property and machinery on the asset side, mortgages and multi-year loans on the liability side.
Can I use this for my personal finances?
Yes. Treat your home, car and savings as assets and your mortgage, car loan and cards as liabilities. The equity figure is then your personal net worth, and the same health checks apply.
What if my equity comes out negative?
It means liabilities exceed assets on the numbers entered. The sheet still balances — equity is simply negative. For a young business that can be a phase; for a household it is a clear signal to focus on paying down debt before adding more.