---
title: "Interest Coverage Ratio Calculator | MCC Solutions"
description: "Enter operating income and interest expense to get your interest coverage ratio. Free and private."
url: "https://mcc-solutionsnj.com/bookkeeping/interest-coverage-ratio-calculator"
---

Free tool

# Interest coverage ratio calculator

See how many times operating income covers your interest payments.

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Operating income, EBIT ($)

Interest expense ($)

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How it works

## How it works

**Interest coverage = operating income (EBIT) divided by interest expense.**

FAQ

## About this calculator

**What is a good interest coverage ratio?**

Lenders often want to see a comfortable cushion above 1, but the right level depends on the industry and the lender. A ratio below 1 means operating income does not cover interest.

**Where do I find EBIT?**

On the income statement: revenue minus cost of goods sold and operating expenses, before interest and taxes.

**Can I use net income instead?**

The standard ratio uses operating income before interest and taxes.

**Is anything saved?**

No. The math runs in your browser and nothing you enter is sent to us.

**Is this tax or financial advice?**

No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.

Related: [ebitda calculator](/bookkeeping/ebitda-calculator), [debt to equity ratio calculator](/bookkeeping/debt-to-equity-ratio-calculator). See [all free tools](/free-tools). More free tools: [Profit margin and markup calculator](/bookkeeping/profit-margin-and-markup-calculator), [1099 deadline calculator](/bookkeeping/1099-deadline-calculator), [Overtime deduction calculator](/bookkeeping/overtime-deduction-calculator), or [see all free tools](/free-tools).

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