Enter the current value of the leveraged position ($) and the initial amount invested before leverage ($) into the Return on Leverage Calculator. The calculator will evaluate and display the Return on Leverage.

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## Return on Leverage Formula

The following formula is used to calculate the Return on Leverage.

ROL =(CV - IBL) / IBL * 100

- Where ROL is the Return on Leverage (%)
- CV is the current value of the leveraged position ($)
- IBL is the initial amount invested before leverage ($)

To calculate the return on leverage subtract the initial amount invested before leverage from the current value of the leveraged position, then divide by the initial investment amount.

## How to Calculate Return on Leverage?

The following example problems outline how to calculate Return on Leverage.

Example Problem #1:

- First, determine the current value of the leveraged position ($).
- The current value of leveraged position ($) is given as: 4,000.

- Next, determine the initial amount invested before leverage ($).
- The initial amount invested before leverage ($) is provided as: 2,000.

- Finally, calculate the Return on Leverage using the equation above:

ROL =(CV – IBL) / IBL * 100

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

ROL =(4,000 – 2,000) / 2,000 * 100 = 100.00 (%)

Example Problem #2:** **

For this problem, the variables needed are provided below:

current value of leveraged position ($) = 6,000

initial amount invested before leverage ($) = 1,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROL =(CV – IBL) / IBL * 100** = ?**