Interest Coverage Calculator
Compare operating earnings before interest and tax with interest expense.
Example result
Negative EBIT produces negative coverage. EBITDA-based coverage and cash coverage are different metrics.
How to calculate it
Negative EBIT produces negative coverage. EBITDA-based coverage and cash coverage are different metrics.
Worked example
This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.
- Earnings before interest and tax
- 60,000 currency units
- Interest expense in same period
- 15,000 currency units
Interest coverage: 4×
Interest Coverage FAQ
Does this prove a loan payment is affordable?
No. Principal repayments, working-capital needs, taxes and cash timing are outside the ratio.
What does this calculation leave out?
Negative EBIT produces negative coverage. EBITDA-based coverage and cash coverage are different metrics.
Are my inputs saved or sent to a server?
Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.
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