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Fixed charge coverage ratio (FCCR) calculator

The fixed charge coverage ratio widens interest coverage to include lease and other fixed charges: (EBIT + fixed charges) ÷ (fixed charges + interest). Switch to EBITDA mode to add back depreciation and amortisation, and add principal repayments grossed up by the tax rate when a loan covenant defines FCCR that way. Lenders often require at least 1.25.

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The Fixed charge coverage ratio (FCCR) calculator turns Earnings basis, EBIT (operating profit), Depreciation & amortisation (EBITDA mode), Lease / fixed charges, Interest expense, Principal repayments (optional), Tax rate (to gross up principal) into Fixed charge coverage (×), Earnings available for fixed charges, Total fixed charges, instantly and for free. For instance, with Earnings basis = EBIT, EBIT (operating profit) = $500,000.00, Depreciation & amortisation (EBITDA mode) = $80,000.00, Lease / fixed charges = $120,000.00, Interest expense = $60,000.00, Principal repayments (optional) = $0.00 and Tax rate (to gross up principal) = 21% it returns Fixed charge coverage (×) = 3.444, Earnings available for fixed charges = $620,000.00 and Total fixed charges = $180,000.00.

How to use it

  1. Enter your values: Earnings basis, EBIT (operating profit), Depreciation & amortisation (EBITDA mode), Lease / fixed charges, Interest expense, Principal repayments (optional), Tax rate (to gross up principal).
  2. Read the result instantly: Fixed charge coverage (×), Earnings available for fixed charges, Total fixed charges.

Frequently asked questions

What does the Fixed charge coverage ratio (FCCR) calculator actually compute?

It takes Earnings basis, EBIT (operating profit), Depreciation & amortisation (EBITDA mode), Lease / fixed charges, Interest expense, Principal repayments (optional) and Tax rate (to gross up principal) and derives Fixed charge coverage (×), Earnings available for fixed charges and Total fixed charges from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

7 values: Earnings basis, EBIT (operating profit) ($), Depreciation & amortisation (EBITDA mode) ($), Lease / fixed charges ($), Interest expense ($), Principal repayments (optional) ($) and Tax rate (to gross up principal) (%). Nothing else is required — no account, no file upload.

Can you show a worked example?

With Earnings basis = EBIT, EBIT (operating profit) = $500,000.00, Depreciation & amortisation (EBITDA mode) = $80,000.00, Lease / fixed charges = $120,000.00, Interest expense = $60,000.00, Principal repayments (optional) = $0.00 and Tax rate (to gross up principal) = 21%, the calculator returns Fixed charge coverage (×) = 3.444, Earnings available for fixed charges = $620,000.00 and Total fixed charges = $180,000.00. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Earnings basis = EBITDA (add back D&A), EBIT (operating profit) = $1,000,000.00, Depreciation & amortisation (EBITDA mode) = $160,000.00, Lease / fixed charges = $240,000.00, Interest expense = $66,000.00, Principal repayments (optional) = $5.00 and Tax rate (to gross up principal) = 23% instead, Fixed charge coverage (×) goes from 3.444 to 4.575 — which is why it is worth testing a few scenarios rather than trusting a single figure.

Which “Earnings basis” option should I choose?

You can pick between « EBIT » and « EBITDA (add back D&A) ». Each one changes what the calculator works out, so switch and compare — the default is « EBIT ».

Which units should I enter the values in?

Enter Tax rate (to gross up principal) %.

What does it give for smaller values?

Scaled down to Earnings basis = EBIT, EBIT (operating profit) = $250,000.00, Depreciation & amortisation (EBITDA mode) = $40,000.00, Lease / fixed charges = $60,000.00, Interest expense = $54,000.00, Principal repayments (optional) = $1.00 and Tax rate (to gross up principal) = 19%, Fixed charge coverage (×) comes out at 2.719. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Running the week: issuing an invoice or a quote, knowing what is in stock and what to reorder, and seeing whether cash covers what is due.

What is the most common mistake?

Reading profit as cash. A profitable month with sixty-day payment terms can still leave the account empty — the two numbers answer different questions.

What is the difference between the Fixed charge coverage ratio (FCCR) calculator and the Debt service coverage ratio (DSCR) calculator?

This one returns Fixed charge coverage (×) and Earnings available for fixed charges; the Debt service coverage ratio (DSCR) calculator returns DSCR (×) and Debt service supported at 1.25×. That is the whole difference — open the one whose figure you need.

Further reading

All guides →
ExplainerFixed-Charge Cover: the Ratio a Landlord or a Lender Looks AtThe same company, the same year, reads 1.02×, 1.52× or 2.56× depending on where rent is put and whether principal is grossed up for tax. Two of those pass a 1.25 covenant and one does not.ComparisonInterest Coverage and the Ratios a Lender Actually TestsA loan agreement's covenants are the ratios that can put a solvent, profitable company into default. Interest coverage, times interest earned and DSCR are not three measures — and the one that adds principal repayment is the one that bites.ComparisonCurrent Ratio vs Quick Ratio, and What Neither Tells YouThe quick ratio removes inventory because inventory is the current asset that may not convert. Two companies with an identical current ratio can be five times apart on the quick ratio — and both measures are still blind to the one thing that actually stops a company paying: timing.ExplainerAsset Turnover: Diagnosing Capital That Is AsleepNet sales divided by net fixed assets is one of the easiest ratios to compute and one of the least comparable. The same retailer scored 10× before the lease standard and 1.39× after it — same shops, same sales, same year.GuideBorrowing for the Business: What the Bank Looks At Before the RateThe coverage ratio is the gate, the guarantee is the second price and the rate is an output. On a 400,000 loan, cutting the rate by a full point moves the coverage ratio by 0.018 — while two extra years of term move it by 0.216. The whole negotiation is in the wrong place.ExplainerReturn on Assets: What the Ratio Says About a Business, and What It HidesReturn on assets, return on net assets and return on capital employed are one family with two moving parts. On the same balance sheet they read 8.3%, 10.2% and 15.6% — and the two steps between them are exactly the two decisions you are making.