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Finance

Interest Coverage Ratio Calculator

Finance

CAT & MBA Verified formulaSI defaultsCompatible units
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Interest Coverage Ratio

Equation and meaning

\[Interest_Coverage_Ratio = ( ( ( Earnings_Before_Interest_and_taxes ) ) / ( ( Interest_payments ) ) )\]

Use this equation when the shown variables describe your problem. Keep all inputs in compatible units; the calculator converts them to SI internally before solving.

Variables in this formula

Earnings_Before_Interest_and_taxes — Earnings Before Interest And Taxes
Enter this value unless it is the selected unknown.
Interest_Coverage_Ratio — Interest Coverage Ratio
Enter this value unless it is the selected unknown.
Interest_payments — Interest Payments
Enter this value unless it is the selected unknown.

How to use this calculator

  1. Leave one value emptyThe empty field is automatically treated as the unknown.
  2. Enter known values and unitsChoose N, kgf, dyn, SI or another compatible unit when available.
  3. Review the automatic answerThe result appears immediately and is substituted back into the formula to check the residual.
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