Cash Coverage Ratio Calculator

Enter the EBIT, non-cash expenses, and interest expense into the calculator to determine the cash coverage ratio.

Cash Coverage Ratio Formula

The following formula is used to calculate the cash coverage ratio.

CCR = ( EBIT – NCE ) / IE

  • Where CCR is the cash coverage ratio
  • EBIT is the earnings before tax and interest
  • NCE is the non-cash expenses
  • IE is the interest expense

Cash Coverage Ratio Defintion

A cash coverage ratio is a measure of the total cash that is available to pay off interest from debt.

Cash Coverage Ratio Example

How to calculate cash coverage ratio?

  1. First, determine the EBIT.

    Calculate the earnings before interest and tax.

  2. Next, determine the non-cash expenses.

    Measure the total non-cash expenses.

  3. Next, determine the interest expense.

    Calculate the total interest expense.

  4. Finally, calculate the cash coverage ratio.

    Calculate the cash coverage ratio using the equation above.


What is a cash coverage ratio?

A cash coverage ratio is a measure of the available cash to pay for interest expense. The higher the ratio the larger the amount of cash to interest expense.

cash coverage ratio calculator
cash coverage ratio formula