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Interest Coverage (Times-Interest-Earned) Ratio Calculator

TIE = EBIT / interest expense.

Compute the times-interest-earned (interest coverage) ratio — a company's ability to service its interest payments out of operating earnings: EBIT / interest expense. < 1.5 is risky; > 3 is generally considered safe.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

TIE = EBIT / interest expense

In depth

Compute the times-interest-earned (interest coverage) ratio — a company's ability to service its interest payments out of operating earnings: EBIT / interest expense. < 1.5 is risky; > 3 is generally considered safe.