leverage

American  

[lev-er-ij, lee-ver-] / ˈlɛv ər ɪdʒ, ˈli vər- /

noun

1. the action of a lever, a rigid bar that pivots about one point and that is used to move an object at a second point by a force applied at a third.

2. the mechanical advantage or power gained by using a lever.

3. power or ability to act or to influence people, events, decisions, etc.; sway.

   Being the only industry in town gave the company considerable leverage in its union negotiations.

   Synonyms:

   pull, clout, weight, strength, advantage

4. the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.

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verb (used with object)

leveraged, leveraging

1. to use (a quality or advantage) to obtain a desired effect or result.

   She was able to leverage her travel experience and her gift for languages to get a job as a translator.

2. to provide with leverage.

   The board of directors plans to leverage two failing branches of the company with an influx of cash.

3. to invest or arrange (invested funds) using leverage.

4. to exert power or influence on.

   It was Joe who leveraged her to change her habits.

leverage British  

/ ˈlɛv-, -vrɪdʒ, ˈliːvərɪdʒ /

noun

1. the action of a lever

2. the mechanical advantage gained by employing a lever

3. power to accomplish something; strategic advantage

4. the enhanced power available to a large company

   the supermarket chains have greater leverage than single-outlet enterprises

5. US word for gearing

6. the use made by a company of its limited assets to guarantee the substantial loans required to finance its business

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leverage Cultural  

1. The amount in which a purchase is paid for in borrowed money. The greater the leverage, the greater the possible gain or potential loss.

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Other Word Forms

• nonleveraged adjective
• unleveraged adjective

Etymology

Origin of leverage

First recorded in 1715–25; lever + -age

Example Sentences

The critics argue Lemssouguer relies heavily on borrowed money, or leverage, to boost profits, a strategy prone to backfiring.

From The Wall Street Journal • Apr. 4, 2026

Starboard argued at the time that the sale of the “substantial majority” of Algonquin Power’s renewables assets could help the company reduce leverage and improve earnings per share.

From Barron's • Apr. 2, 2026

However, Wall Street analysts have said that trend plays into the hands of bigger chains like Walmart and Costco, who can use their size and leverage with suppliers to keep prices lower.

From MarketWatch • Apr. 2, 2026

Nobody knows how many, but it doesn’t take too many for it to exert a lot of leverage.

From Slate • Apr. 1, 2026

He puts his foot up against the wall to give himself extra leverage as he pulls, and then all at once they collapse onto me, Radar’s sweat-soaked T-shirt pressed up against my face.

From "Paper Towns" by John Green

Related Words

• advantage
• bargaining chip
• clout
• weight