# Degree Of Operating Leverage Calculators Online.

The degree of operating leverage calculator is a tool that calculates a multiple that rates how much income can change as a consequence of a change in sales.

**formula us,**

Total Sales=Total costs = Earings before interests and taxes (EBIT)

Total Sales=(Variable costs + fixed Costs ) =EBIT

**Let us consider,**

**1.)**The company’s Earnings Before Interest and Taxes (EBIT) to its sales.

**2.)**Fixed costs are constant and independent of the level of sales(%).

**3.)**Variable costs increase together with the sales.

**For example, **

**For an operating leverage factor equal to 6, it means that if sales increase by 15%, EBIT will increase by 60%.** By the way, if you find such a company.

Total Sales=(Variable costs + fixed Costs ) =EBIT

Total Sales =(6+(15%)=60%

The answer is Degree of operating leverage = 8.70$

## 2.)Degree Of Operating Leverage Formula

The DOL is change in sales equal to period two sales less than period one sales divided to period one sales.Change in EBIT Equal to period two EBIT less than period one sales divided to period one sales.

**Formula as,**

Change in sales = (Period two sales – Period one sales) / Period one sales

Change in EBIT = (Period two EBIT – Period one EBIT) / Period one EBIT

**Let us consider,**

- The quarter from last year to the quarter of the current year, two consecutive quarters, trailing twelve-month values, or yearly values.

**Example**

**3.**)Degree of operating leverage formula

The degree of Operating leverage equal to change in earnings and interest and taxes divided to change in sales.

**Formula us,**

Degree of operating leverage = Change in EBIT / Change in sales

**Let us consider,**

**1.)** The percentage change of sales and EBIT directly.

**2.)** The sales compare specific periods .

**For Example,**

Degree of operating leverage = Change in EBIT / Change in sales

Degree of operating leverage =( 2.5%) / ( 3.5%)

The answer is DOL = 0.714