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 ($)
How to Calculate Leverage Profit?
The following example problems outline how to calculate Leverage Profit.
Example Problem #1
- First, determine the total leverage amount ($). 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 ($)
