Interest Coverage Ratio Calculator – Fixed Income Tools – Multi-Tools

Interest Coverage Ratio Calculator

Calculate and analyze the Interest Coverage Ratio (ICR) to assess a company’s ability to meet its interest payment obligations using operating income.

Operating Income Details
Earnings Before Interest and Taxes
Earnings Before Interest, Taxes, Depreciation & Amortization
Interest Expense Details
Annual interest payment obligations
Advanced Options

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How to Use
  1. Enter EBIT or EBITDA values
  2. Input annual interest expense
  3. Select calculation method
  4. Choose analysis period
  5. Click Calculate to analyze ICR

Interpretation:

  • ICR > 3.0: Strong coverage
  • 1.5 < ICR < 3.0: Adequate coverage
  • ICR < 1.5: Weak coverage

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