## 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