Finance CalculatorsBusiness FinanceFree Tool
Combined Leverage Calculator
Calculate your Degree of Combined Leverage (DCL) by computing operating leverage and financial leverage together from contribution margin, EBIT, and interest expense.
How to Use Combined Leverage Calculator
- 1Enter your contribution margin
- 2Enter your EBIT
- 3Enter your interest expense
- 4Click Calculate to see your DOL, DFL, and combined leverage (DCL)
Frequently Asked Questions
It runs both the Degree of Operating Leverage (DOL = Contribution Margin divided by EBIT) and Degree of Financial Leverage (DFL = EBIT divided by (EBIT minus Interest)) calculations internally from your three inputs, then multiplies them: DCL = DOL times DFL.
A DCL of, say, 3 means a 1% change in sales causes roughly a 3% change in EPS, combining both the operating cost structure effect and the financial leverage effect into one sensitivity figure.
The underlying math is the same - this tool just combines both calculations into one step so you get DOL, DFL, and DCL together from a single set of inputs, instead of running two separate calculators and multiplying the results yourself.
DCL depends on both your cost structure (contribution margin vs EBIT) and your capital structure (EBIT vs interest) - all three figures feed into the combined calculation.
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