Times Interest Earned Ratio Calculator

LAST UPDATE: September 25th, 2020


Definition – What is the times interest earned ratio?

The times interest earned ratio is a measurement of EBIT (Earnings before Interest and Taxes) to the company’s interest expense.

Formula – How to calculate times interest earned

Times Interest Earned = EBIT / Interest Expense


A company has an EBIT of $3,000 and interest expense of $3,000.

Times Interest Earned = $3,000 / $3,000 = 1.000

Therefore, this company has a times interest earned of 1.000.

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