Financial Leverage Calculator

Enter the total EBIT and EBIT minus interest into the calculator. The calculator will evaluate and display the financial leverage.

Financial Leverage Formula

The following equation can be used to calculate the financial leverage of a company.

FL = EBIT / (EBT)

  • Where FL is financial leverage
  • EBIT is the earnings before interest and tax
  • EBT is the earning before tax only

What is Financial Leverage?

Financial leverage is a metric that describes how well a company is performing relative to it’s interest earnings. In other words, the ratio of EBIT to EBT.

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