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Degree of Operating Leverage (DOL) Calculator

DOL = % ΔEBIT / % ΔSales = (Sales − VC) / EBIT.

Compute the degree of operating leverage — sensitivity of EBIT (operating income) to a change in sales — directly from contribution margin and EBIT: DOL = (Sales − Variable Costs) / EBIT. A DOL of 3 means a 1 % change in sales produces a 3 % change in EBIT (high fixed-cost businesses tend to have high DOL).

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

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Results

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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

DOL = (Sales − VC) / EBIT.

In depth

Compute the degree of operating leverage — sensitivity of EBIT (operating income) to a change in sales — directly from contribution margin and EBIT: DOL = (Sales − Variable Costs) / EBIT. A DOL of 3 means a 1 % change in sales produces a 3 % change in EBIT (high fixed-cost businesses tend to have high DOL).