Free Online Calculators » Leverage Ratios Calculator

In finance, leverage (sometimes referred to as gearing in the UK and Australia) is a technique to multiply losses and gains.



Initial Data

 

Fixed cost (per period)
Variable cost (per unit)
Expected Sales (№ of Units)
Price (per unit)
Fixed financing cost

Result

 

Degree of Operating Leverage (DOL)
Degree of Financial Leverage (DFL)
Degree of Total Leverage (DTL)

 

Degree of Operating Leverage (DOL) shows how sensitive is operating income to changes in sales.

Degree of Financial Leverage (DFL) shows how sensitive are cash flows available to owners to changes in operating income.

Degree of Total Leverage (DTL) shows sensitivity of the cash flows to owners to changes in revenue.