The coating impact test, in combination with its finite elements method (FEM) simulation, is used to quantitatively characterize the fatigue behaviour of thin hard physical vapour deposited (PVD) coatings as well as of multilayer ones. Successive impacts of a cemented carbide ball onto a plane coated specimen induce severe contact loads and strain superficially the layered compound. The fatigue failure mode of each specimen is classified by means of scanning electron microscope (SEM) observations, microspectral analyses and profilometry. FEM simulating models of the impact test are used to determine the critical stress components, which introduce coating fatigue failure. The FEM computational results are correlated to the experimental ones and used to interpret them quantitatively. Herewith, critical values for stress components, responsible for distinctive fatigue failure modes of the coating substrate compounds are obtained and the fatigue limits of the examined multilayer coatings are inserted in general applicable Smith diagrams. Furthermore, the derived critical stresses are verified by investigating the same multilayer coatings on different substrates.