Times Interest Earned Ratio Calculator
How many times earnings cover interest
Instructions
Enter EBIT and interest expense. The result indicates interest coverage.
Formula
TIE = EBIT / Interest Expense
About TIE
TIE is similar to interest coverage and signals the margin of safety for servicing debt.
Common Questions
What is a good TIE?
Values above ~2–3× are often considered adequate; varies by industry.