Times Interest Earned Ratio Calculator

How many times earnings cover interest

How to Use This Calculator

Enter EBIT and interest expense. The result indicates interest coverage.

Formula

TIE = EBIT / Interest Expense

About TIE

TIE is similar to interest coverage and signals the margin of safety for servicing debt.

Frequently Asked Questions

What is a good TIE?

Values above ~2–3× are often considered adequate; varies by industry.