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    Calculators

    The interest cover ratio gives an indication of the ability of your business to meet ongoing interest bills and therefore service debt.

    Use information from your business' annual profit and loss statements to input into the calculator.

    For information on using this calculator see below.
    Calculator Interest Cover Calculator
    Leasing amount $  
    A red star Field required indicates a mandatory field.
    reset calculate
    The following ranges are a general guide only.
    • Above 2:1 indicates a good interest cover position.
    • Between 1.5 to 2:1 indicates average interest cover.
    • Between 1.0 to 1.5:1 indicates some weakness that may require attention.
    • Below 1 indicates that interest cover is insufficient to cover ongoing finance expenses.
    Ratios should be considered over a period of time (say three years), in order to identify trends in the performance of the business.
    The calculation used to obtain the ratio is:

    Interest Cover Ratio =  

    (Net profit before tax + Finance expenses)/Finance expenses

    		 
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    Disclaimer

    This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.

    ANZ will not store the information provided in this calculator.