Capital Adequacy Ratio Calculator
Capital adequacy ratio calculator works out Current ratio and Quick (acid-test) ratio from Tier 1 capital, Tier 2 capital and Risk-weighted assets. The default figures on this page give capital adequacy ratio of 12.0000 %; change any entry and the result, the working and the sources update together.
Your figures
Updates as you typeHow this is worked out
1 step
- Capital adequacy = (Tier 1 + Tier 2) / risk-weighted assets = (90 + 30) / 1000 = 12%
Ratios computedtable
Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed
Sources and references
3 sources
Keep this result
Save it, change one figure, then compare the two
The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.
What the capital adequacy ratio calculator calculates
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage, capital adequacy and P/E - from financial-statement line items.
How to use this capital adequacy ratio calculator
Enter Tier 1 capital, Tier 2 capital and Risk-weighted assets. Current ratio updates as you type. Change one figure at a time to see what drives the result.
How the result is worked out
Open “How this is worked out” beside the result for the step-by-step calculation behind Current ratio, Quick (acid-test) ratio and Net working capital.
The method follows Basel Committee on Banking Supervision, Basel III capital framework: capital ratio = eligible capital / risk-weighted assets, DuPont identity: equity multiplier (financial leverage) = total assets / total equity and Price/earnings ratio = market price per share / earnings per share.
What you can compare
Change one input at a time to see how it affects Current ratio, Quick (acid-test) ratio and Net working capital. The inputs you can vary are Tier 1 capital, Tier 2 capital and Risk-weighted assets.
Understanding Current ratio, Quick (acid-test) ratio and Net working capital
Ratio arithmetic on the figures you enter. Lenders, regulators and analysts define these line items differently (book versus market value, average versus closing balances, leases and off-balance-sheet items), so agree the definitions before relying on a figure.
Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.
See something wrong? Report a problem with this calculator
Frequently asked questions
How do I calculate the capital adequacy ratio?
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage. Open “How this is worked out” beside the result to see each step for your own figures.
What is a good capital adequacy ratio?
Computes liquidity, leverage, coverage and profitability ratios - current and quick ratios, working capital, debt-to-equity, interest coverage, DSCR, ROE, ROA, operating leverage. On this page it is computed from Tier 1 capital, Tier 2 capital and Risk-weighted assets and shown as Current ratio, Quick (acid-test) ratio and Net working capital.
What is the current capital adequacy ratio?
On the figures this page opens with, the capital adequacy ratio is 12%. No single number fits everyone: it follows Tier 1 capital, Tier 2 capital and Risk-weighted assets, so enter your own above and the answer updates as you type.
What information do I need for the capital adequacy ratio calculator?
You need Tier 1 capital, Tier 2 capital and Risk-weighted assets. The page opens with default figures that give capital adequacy ratio of 12.0000 %, so you can see the scale before entering your own.
What does this capital adequacy ratio calculator show?
It shows Current ratio, Quick (acid-test) ratio, Net working capital, Debt-to-equity ratio, Debt-to-assets ratio, Financial leverage (equity multiplier), Interest coverage ratio and Debt-service coverage ratio (DSCR), with the working and any warnings for your entries.
Can I check how the capital adequacy ratio calculator result was calculated?
Yes. The “How this is worked out” section shows the calculation steps, and the sources section identifies the references used for the method.