Enter the total amount of debt ($) and the total value of assets, capital, or equity ($) into the Leverage Ratio Calculator. The calculator will evaluate and display the Leverage Ratio.

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## Leverage Ratio Formula

The following formula is used to calculate the Leverage Ratio.

**LR = D / AV**

- Where LR is the Leverage Ratio ($/$)
- D is the total amount of debt ($)
- AV is the total value of assets, capital, or equity ($)

## How to Calculate Leverage Ratio?

The following example problems outline how to calculate Leverage Ratio.

Example Problem #1:

- First, determine the total amount of debt ($).
- The total amount of debt ($) is given as: 10,000.

- Next, determine the total value of assets, capital, or equity ($).
- The total value of assets, capital, or equity ($) is provided as: 20,000.

- Finally, calculate the Leverage Ratio using the equation above:

LR = D / AV

The values given above are inserted into the equation below and the solution is calculated:

LR = 10,000 / 20,000 = .50 ($/$)

Example Problem #2:** **

For this problem, the variables required are provided below:

total amount of debt ($) = 13,000

total value of assets, capital, or equity ($) = 30,000

Test your knowledge using the equation and check your answer with the calculator above.

LR = D / AV** = ?**