# Interest coverage

> Interest coverage is a leverage and coverage metric, calculated as EBIT ÷ Interest expense. Common covenant.

Source: https://lopifi.com/glossary/interest-coverage
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is interest coverage?** Interest coverage is a leverage and coverage metric, calculated as EBIT ÷ Interest expense.

## Formula

`EBIT ÷ Interest expense`

## Note

Common covenant

- **Category:** Leverage & coverage
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** expense, ebit