Enter the total leverage amount ($), the total return on investment (%), and the total down payment ($) into the calculator to determine the Leverage Profit.
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Leverage Profit Formula
The following formula is used to calculate the Leverage Profit.
LP = LA * ROI/100 - DP
- Where LP is the Leverage Profit ($)
- LA is the total leverage amount ($)
- ROI is the total return on investment (%)
- DP is the total down payment ($)
To calculate the leverage profit, multiply the leverage amount by the ROI, then subtract the down payment.
How to Calculate Leverage Profit?
The following example problems outline how to calculate Leverage Profit.
Example Problem #1
- First, determine the total leverage amount ($). In this example, the total leverage amount ($) is given as 10000 .
- Next, determine the total return on investment (%). For this problem, the total return on investment (%) is given as 10 .
- Next, determine the total down payment ($). In this case, the total down payment ($) is found to be 500.
- Finally, calculate the Leverage Profit using the formula above:
LP = LA * ROI/100 – DP
Inserting the values from above yields:
LP = 10000 * 10/100 -500 = 500 ($)
Example Problem #2
The variables needed for this problem are provided below:
total leverage amount ($) = 60000
total return on investment (%) = 15
total down payment ($) = 5000
Entering these values and solving gives:
LP = 60000*15/100-5000= 4000 ($)
