Result
Leverage
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Leverage = total deal amount ÷ own funds, expressed as a multiple (e.g. '5×'): exactly how many times borrowed money multiplies the deal size compared to what you put in yourself. Borrowed share = (total amount − own funds) ÷ total amount × 100%.
Leverage amplifies the result both ways: the return or loss on the deal is computed on the full amount, not just the equity you invested, so both gains and losses as a percentage of your own funds scale with the leverage.
This is the same principle used in trading margin, mortgage-financed real estate, or equipment leasing with a partial down payment — the mechanics are identical, just the terminology differs by industry.