Interest Coverage Ratio Calculator

Find your interest coverage ratio.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

This calculator finds the interest coverage ratio (ICR) — EBIT (earnings before interest and taxes) divided by interest expense — which shows how many times over a company could pay its interest obligations from its operating earnings. A ratio below about 1.5 is often seen as a warning sign of financial distress.

Lenders and bond analysts use it to assess how safely a company can service its debt before extending credit, and business owners and finance students use it to check a company's debt capacity from its income statement. Enter EBIT and interest expense to get the ratio instantly.

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