Free · Financial ratios
Earnings & Interest Coverage Calculator
Compare earnings before interest and tax with interest expense.
- Formula & worked example
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Your calculation
Enter enough known values to calculate the blanks.
Use one currency for your figures. Mixed-currency conversions use rates captured October 5, 2026, rather than live exchange rates.
How to use this calculator
- Enter the values you know in the units shown. Leave unknown values blank.
- Results update automatically as you type. Edit a result to calculate another value, or lock a value to keep it fixed.
- Reset restores the starting fields. A worked example appears below.
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
Interest coverage divides EBIT by interest expense. It shows earnings coverage of interest for the selected period; it does not include principal repayments or establish cash availability.
Earnings before interest and tax ÷ Interest expense
Worked example
Enter these known values and leave the other values blank.
- EBIT
- 50000 USD
- Interest expense
- 10000 USD
- Interest coverage ratio
- 5
Assumptions and limitations
- Inputs must satisfy the validation rules. Editing a result can recalculate an earlier input; lock values you want to keep fixed.
- Currency conversions use the captured source rates from October 5, 2026; they are not live exchange rates.
Common questions
What does this interest coverage calculation tell me?
Interest coverage divides EBIT by interest expense. It shows earnings coverage of interest for the selected period; it does not include principal repayments or establish cash availability.
Can I calculate a different unknown?
Yes. Clear that field and enter the other known values. The calculator uses the available inverse equations.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.