Online Tools and Calculators > Financial Calculators > Times Interest Earned Ratio Calculator

Times Interest Earned Ratio Calculator

To calculate TIE ratio, enter the following information:
You may use our EBIT calculator to determine EBIT.
EBIT (Earnings before interest and taxes):
Total interest:

About This Tool

The online Times Interest Earned Ratio Calculator is used to calculate the times interest earned (TIE) ratio.

Times Interest Earned Definition

Times interest earned (TIE) is a measure of a company's ability to honor its debt payments. It is calculated as a company's earnings before interest and taxes (EBIT) divided by the total interest payable. The times interest earned ratio is also referred to as the interest coverage ratio.

Calculation of Times Interest Earned Ratio

The Times Interest Earned Ratio calculation formula is as following:

Times Interest Earned Ratio = EBIT / Total Interest

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