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

Explanation

If you have leverage, you hold the advantage in a situation or the stronger position in a contest, physical or otherwise. The lever is a tool for getting more work done with less physical force. With the right leverage, you might be able to lift a heavy box. This refers to non-physical situations too: the power to move or influence others is also leverage. Since your boss has the power to fire you, that's a lot of leverage to get you to do what he wants. If your friend owes you a favor, you have leverage to get a favor of your own.

Example Sentences

“Micron had an interesting survival strategy in leveraging Japan and picking up the pieces in these downcycles,” Harvard professor Shih told MarketWatch.

From MarketWatch • Jul. 3, 2026

Chief Executive Brendan Foley said McCormick effectively managed elevated inflation and incremental costs related to the war in the Middle East, leveraging productivity initiatives and cost-savings programs to improve margins.

From The Wall Street Journal • Jun. 25, 2026

Personal computers with Qualcomm’s latest central processing units began rolling out in the past couple of years too, leveraging technology from the company’s 2021 purchase of the startup Nuvia.

From The Wall Street Journal • Jun. 16, 2026

“It’s now a shift to individual homeowners and communities to start leveraging some of that work that your agencies are doing.”

From Los Angeles Times • Jun. 13, 2026

It made sense, Gus leveraging his terminality to make my dream come true: The sequel was a tiny thing to die for, but it was the biggest thing left at his disposal.

From "The Fault in Our Stars" by John Green

Related Words

• advantage
• bargaining chip
• clout
• weight