Finance calculator

Interest coverage ratio calculator

Coverage = EBIT ÷ interest expense. Higher implies more cushion for lenders.

Inputs

Enter valid numbers. Calculations run entirely in your browser.

Annual or same window as EBIT.

Results

Example

EBIT 210,000 and interest 35,000 → 6× coverage.

Explanation

Lenders watch this covenant-friendly ratio alongside cash flow coverage.

FAQ

Capitalized interest?

Keep definitions aligned with your loan agreements.

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