Degree of Total Leverage Calculator

Posted by Dinesh on

Calculate the total cash flows to owners to changes in revenue by using simple degree of total leverage (DTL) calculator online.

Calculate Degree of Total Leverage

Formula:

DTL = Q(P - VC) / (Q(P - VC) - F - I)

Where,
Q - sale quantity in units
P sale price per unit
VC variable operating cost per unit
I interest
P preferred stock dividends
F Fixed operating cost per unit

Degree of Total Leverage (DTL) shows sensitivity of the cash flows to owners to changes in revenue.