Enter the degree of operating leverage and the degree of financial leverage into the Calculator. The calculator will evaluate the Total Leverage.

## Total Leverage Formula

TL = DOL * DFL

Variables:

• TL is the Total Leverage ()
• DOL is the degree of operating leverage
• FDL is the degree of financial leverage

To calculate Total Leverage, multiply the degree of operating leverage by the degree of financial leverage.

## How to Calculate Total Leverage?

The following steps outline how to calculate the Total Leverage.

1. First, determine the degree of operating leverage.
2. Next, determine the degree of financial leverage.
3. Next, gather the formula from above = TL = DOL * DFL.
4. Finally, calculate the Total Leverage.
5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem :

Use the following variables as an example problem to test your knowledge.

degree of operating leverage = 0.74

degree of financial leverage = 0.89