Fixed Charge Coverage Ratio (FCCR) Calculator
Calculate the Fixed Charge Coverage Ratio (FCCR) with EBIT, lease payments, interest, and preferred dividends. Assess corporate creditworthiness instantly.
Fixed-Charge Coverage Ratio
Assess ability to satisfy fixed financing expenses
Corporate Profiles
Fixed Commitments (Before Tax)
FCCR Ratio
Strong
3.1x
| EBIT + Fixed Charges (Numerator) | $0 |
| Total Fixed Charges (Denominator) | $0 |
Coverage Padding
1.0x (Break Even)
Safe Capacity
How to Use Fixed Charge Coverage Ratio (FCCR) Calculator in 3 Easy Steps
1
Step 1
Enter EBIT, fixed charges before tax, and interest expense.
2
Step 2
Add lease payments, preferred dividends, and tax rate in advanced settings.
3
Step 3
View the FCCR ratio with risk level assessment and detailed breakdown.
Frequently Asked Questions
Generally, an FCCR above 2.0x is considered strong. Above 1.25x is adequate. Below 1.0x indicates the company cannot cover its fixed charges, which is a serious financial concern.
Lenders use FCCR as a loan covenant — a minimum ratio the borrower must maintain. If FCCR drops below the covenant threshold, the lender may call the loan, restrict further borrowing, or renegotiate terms.
Preferred dividends are paid from after-tax income, unlike interest which is tax-deductible. To make them comparable on a pre-tax basis, they are divided by (1 - tax rate), reflecting their true pre-tax cost to the company.