Leverage Profit Calculator

Formula

To calculate the Leverage Profit (LP):

\[ LP = LA \times \frac{ROI}{100} - DP \]

Where:

$LP$ is the Leverage Profit ($)
$LA$ is the Leverage Amount ($)
$ROI$ is the Return on Investment (%)
$DP$ is the Down Payment ($)

What is Leverage Profit?

Leverage profit refers to the profit made on an investment when leverage is used. It is calculated by multiplying the leverage amount by the return on investment, then subtracting the down payment. This calculation helps investors understand the potential profit or loss from an investment when leverage is used.

Example Calculation

Let's assume the following values:

Leverage Amount ($LA$) = $100,000
Return on Investment ($ROI$) = 10%
Down Payment ($DP$) = $20,000

Using the formula:

\[ LP = 100000 \times \frac{10}{100} - 20000 = 10000 - 20000 = -$10,000 \]

The Leverage Profit is -$10,000.