Interest Coverage Ratio Calculator
Ability to cover interest with operating earnings
Instructions
Input EBIT and interest expense. The ratio indicates how many times interest is covered by operating earnings.
Formula
Interest Coverage = EBIT / Interest Expense
About This Ratio
Higher coverage suggests lower default risk. Track trends over time and vs. peers.
Common Questions
Use EBIT or EBITDA?
This calculator uses EBIT. Some analysts also look at EBITDA coverage for additional context.