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Interest Coverage Ratio (ISCR)
Result
Chart
Show formula & working
ISCR = (PBT + Interest + Depreciation) ÷ Interest
EBIT interest cover = (PBT + Interest) ÷ Interest
Typical lender reference: 2x or more — a reference point, not an approval criterion.Details
How this works
Interest coverage tests whether earnings comfortably pay interest. Indian lenders often compute ISCR on cash profit (EBITDA).
Unlike DSCR, it ignores principal repayments.
Frequently asked questions
Which interest — all, or only term loans?
All finance costs, unless your lender defines it otherwise.
Why two versions?
EBITDA cover reflects cash; EBIT cover reflects profit after the cost of assets.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.