Interest Coverage Ratio Calculator
Enter EBIT and interest expense with matching period and currency labels.
A QUICK WALKTHROUGH
How to use this tool
- Enter EBIT, which may be negative.
- Enter positive interest expense for the same period.
- Calculate the ratio, signed gap and headroom where defined.
Formula
Coverage = B ÷ J; signed gap = B − J; headroom (%) = 100 × (1 − J ÷ B) when B is not zero.
Scope
B and J must use the same period and currency. Negative EBIT and ratios below 1 are shown as signed algebra and a deficit, not as usable positive surplus. No 1.5x rule or lender covenant claim is used.
GOOD TO KNOW
Common questions
What if EBIT is zero?
Coverage is zero and headroom is undefined because the headroom formula divides by EBIT.
Is headroom cash available?
No. It is a signed EBIT-versus-interest algebraic measure, not cash or covenant advice.