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EBIT Interest Expense Coverage Calculator

Compare earnings before interest and taxes with interest expense.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

EBIT of 150,000 divided by interest expense of 30,000 gives interest coverage of 5 times.

Interest coverage = EBIT ÷ interest expense

Worked example

Enter these known values and leave the other values blank.

EBIT
150000 USD
Interest expense
30000 USD
Interest coverage ratio
5

Assumptions and limitations

  • No. The denominator contains interest expense only. Principal repayments and other cash obligations belong in a separate debt-service analysis. Use the same reporting period for EBIT and interest expense.
  • Use consistent units, dates and financial definitions. The calculated result follows the stated assumptions and the amounts entered.

Common questions

Does interest coverage include principal repayments?

No. The denominator contains interest expense only. Principal repayments and other cash obligations belong in a separate debt-service analysis. Use the same reporting period for EBIT and interest expense.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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