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Interest Coverage Ratio Calculator
See how easily a company can pay interest on its outstanding debt with the Interest Coverage Ratio.
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What is the Interest Coverage Ratio?
The Interest Coverage Ratio measures how easily a company can pay the interest on its outstanding debt from its operating profits, a key indicator of financial health and credit risk.
The formula
Interest Coverage Ratio = EBIT / Interest Expense. A ratio below 1.5 to 2 is often viewed as a warning sign that a company may struggle to meet its interest obligations, while a higher ratio suggests a stronger debt-servicing cushion.
This calculator is for general financial-analysis education.
Last reviewed August 2026