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Times Interest Earned Ratio Calculator
Calculate how many times over a company can cover its interest payments from operating earnings, with the Times Interest Earned ratio.
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What is Times Interest Earned?
The Times Interest Earned (TIE) ratio, also known as the interest coverage ratio, shows how many times a company’s operating earnings could cover its interest expense, indicating solvency risk to lenders and creditors.
The formula
TIE = EBIT / Interest Expense. A TIE of 5 means the company earns 5 times what it needs to cover interest payments; a low TIE (below 1.5-2) is often viewed as a solvency warning sign.
This calculator is for general financial-analysis education.
Last reviewed August 2026