Times Interest Earned Ratio

Instructions: Compute the Times Interest Earned Ratio \((TIER)\) with this calculator. You need to provide the Earnings Before Interest and Taxes \((EBIT)\) and the interest paid in the form below:

Earnings Before Interest and Taxes \((EBIT)\) =
Intertest =

Times Interest Earned Ratio Calculator

More about this times interest earned ratio calculator that will allow to get a step-by-step calculations. The Times Interest Earned Ratio corresponds to the ratio between the EBIT and the interest . This ratio is a measure of long term solvency, and it indicates the number many times earnings can pay for the interest owed:

\[ TIER = \displaystyle \frac{EBIT}{\text{Interest}}\]

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