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Times Interest Earned Ratio Calculator

Times Interest Earned Ratio Calculator is a tool to evaluate TIE by dividing the income before interest and taxes (EBIT) by the interest expense

All processing happens on the client-side, locally in your browser. No data is uploaded.

Earnings before interest and taxes amount
Total interest amount
Times Interest Earned Ratio
5.000

History

  • 2018-06-10Tool Launched

Background

What does Interest Earned Ratio mean?
Times interest earned or (TIE), also known as interest coverage ratio. It is the measure of a firm’s capacity to honor its debt payments. It may be calculated as either EBIT or as EBITDA when divided by the total interest payable.
Formula
Times interest earned = EBIT/I = Number of Times
Example

Lee’s statement shows $50,000 in income before interest expenses and taxes. The firm’s overall interest and debt service for a year are amounted to $5,000.

According, to the formula, Times interest earned is:-

  • $50,000 / $5,000 = 10 Times