Leverage vs. Power: What's the Difference?
Edited by Aimie Carlson || By Janet White || Updated on October 6, 2023
"Leverage" refers to the strategic advantage or means to influence, while "Power" denotes the ability or capacity to act or do something effectively.
Key Differences
"Leverage" primarily signifies the use of a tool, resource, or strategy to maximize advantage and outcome. It can be applied in various contexts, like finance, where it pertains to using borrowed capital for investment. On the other hand, "Power" is a broader term that encapsulates the inherent ability or authority to control, influence, or act. It can be seen in many forms, such as physical strength or political authority.
In a negotiation, having Leverage means possessing something that the other party values, allowing one to sway the outcome. However, having Power in the same context implies having greater authority or influence, which may stem from a higher position or inherent capability. While Leverage can be momentary and situation-specific, Power often indicates a sustained ability or potential.
In the realm of physics, Leverage involves using a lever to amplify an input force to produce a greater output. Conversely, Power represents the rate at which work is done or energy is transferred. Here, Leverage operates as a means to enhance an action, while Power measures the action's intensity or speed.
At a conceptual level, Leverage often requires an external factor or condition to be effective. For instance, in business, one might use brand reputation as Leverage to enter a new market. Power, in contrast, stands on its own, signifying the innate or acquired ability to effect change or produce results, such as a company's Power in dominating market share.
Comparison Chart
ZzDefinition
Strategic advantage or means to influence
Ability or capacity to act or do something
ADVERTISEMENT
Usage
Often requires an external factor
Stands on its own, inherent or acquired
Context
Situation-specific
Broader and more sustained
Application
Amplification of action or influence
Execution or exercise of action or authority
Nature
Can be temporary
Can be long-lasting or permanent
Leverage and Power Definitions
Leverage
The ability to shape situations to one's advantage.
Companies use brand Leverage to expand their market presence.
ADVERTISEMENT
Power
Legal or official authority or control.
The president has the Power to veto bills.
Leverage
Use of borrowed capital to increase potential return of an investment.
He used financial Leverage to buy the property.
Power
Physical might or strength.
The athlete showcased his Power during the competition.
Leverage
Strategic advantage or power in a situation.
Her unique skills provided her with Leverage in the negotiation.
Power
Influence or sway over others.
Media has the Power to shape public opinion.
Leverage
The mechanical advantage gained by using a lever.
With the right Leverage, you can lift heavy objects easily.
Power
The ability or capacity to act or do something effectively
Is it in your power to undo this injustice?.
Leverage
The action of a lever.
Power
Often powers A specific capacity, faculty, or aptitude
Her powers of concentration.
Leverage
The mechanical advantage of a lever.
Power
Physical strength or force exerted or capable of being exerted
The power of the waves.
Leverage
Positional advantage; power to act effectively
"started his ... career with far more social leverage than his father had enjoyed" (Doris Kearns Goodwin).
Power
Effectiveness at moving one's emotions or changing how one thinks
A novel of great power.
Leverage
The use of credit or borrowed funds, often for a speculative investment, as in buying securities on margin.
Power
The ability or official capacity to exercise control; authority
How long has that party been in power?.
Leverage
To provide (a company) with leverage.
Power
The military strength or economic or political influence of a nation or other group
That country projects its power throughout the region.
Leverage
To supplement (money, for example) with leverage.
Power
A country, nation, or other political unit having great influence or control over others
The western powers.
Leverage
To improve or enhance
"It makes more sense to be able to leverage what we [public radio stations] do in a more effective way to our listeners" (Delano Lewis).
Power
A supernatural being
The powers of evil.
Leverage
To use so as to obtain an advantage or profit
Leveraged their personal contacts to find new investors.
Power
Powers(Christianity) The sixth of the nine orders of angels in medieval angelology.
Leverage
A force compounded by means of a lever rotating around a pivot; see torque.
A crowbar uses leverage to pry nails out of wood.
Power
The energy or motive force by which a physical system or machine is operated
Turbines turned by steam power.
A sailing ship driven by wind power.
Leverage
(by extension) Any influence which is compounded or used to gain an advantage.
Try using competitors’ prices for leverage in the negotiation.
Power
The capacity of a system or machine to operate
A vehicle that runs under its own power.
Leverage
(finance) The use of borrowed funds with a contractually determined return to increase the ability to invest and earn an expected higher return, but usually at high risk.
Leverage is great until something goes wrong with your investments and you still have to pay your debts.
Power
Electrical or mechanical energy, especially as used to assist or replace human energy.
Leverage
(finance) The debt-to-equity ratio.
Power
Electricity supplied to a home, building, or community
A storm that cut off power to the whole region.
Leverage
(business) The ability to earn very high returns when operating at high-capacity utilization of a facility.
Their variable-cost-reducing investments have dramatically increased their leverage.
Power
(Physics) The rate at which work is done, expressed as the amount of work per unit time and commonly measured in units such as the watt and horsepower.
Leverage
To use; to exploit; to manipulate in order to take full advantage (of something).
They plan to leverage the publicity into a good distribution agreement.
They plan to leverage off the publicity to get a good distribution agreement.
Power
The product of applied potential difference and current in a direct-current circuit.
Leverage
The action of a lever; mechanical advantage gained by the lever.
Power
The product of the effective values of the voltage and current with the cosine of the phase angle between current and voltage in an alternating-current circuit.
Leverage
The mechanical advantage gained by being in a position to use a lever
Power
See exponent.
Leverage
Strategic advantage; power to act effectively;
Relatively small groups can sometimes exert immense political leverage
Power
The number of elements in a finite set.
Leverage
Investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)
Power
(Statistics) In a statistical test, the probability of correctly rejecting the null hypothesis when it is false.
Leverage
Supplement with leverage;
Leverage the money that is already available
Power
A measure of the magnification of an optical instrument, such as a microscope or telescope.
Leverage
Provide with leverage;
We need to leverage this company
Power
Chiefly Upper Southern US A large number or amount. See Note at powerful.
Leverage
Exerting influence to get a desired outcome.
She used her connections as Leverage to secure the deal.
Power
(Archaic) An armed force.
Power
Of or relating to political, social, or economic control
A power struggle.
A power base.
Power
Operated with mechanical or electrical energy in place of bodily exertion
A power tool.
Power car windows.
Power
Of or relating to the generation or transmission of electricity
Power companies.
Power lines.
Power
(Informal) Of or relating to influential business or professional practices
A pinstriped suit with a power tie.
Met with high-level executives at a power breakfast.
Power
To supply with power, especially mechanical or electrical power.
Power
The ability to do or undergo something.
Power
(social) The ability to coerce, influence, or control.
Power
(countable) The ability to affect or influence.
Power
Control or coercion, particularly legal or political (jurisdiction).
Power
The people in charge of legal or political power, the government.
Power
(metonymically) An influential nation, company, or other such body.
Power
An army, a military force.
Power
Effectiveness.
Power
Physical force or strength.
He needed a lot of power to hit the ball out of the stadium.
Power
Electricity or a supply of electricity.
After the pylons collapsed, this town was without power for a few days.
Power
A measure of the rate of doing work or transferring energy.
Power
The strength by which a lens or mirror magnifies an optical image.
We need a microscope with higher power.
Power
A large amount or number.
Power
Any of the elementary forms or parts of machines: three primary (the lever, inclined plane, and pulley) and three secondary (the wheel-and-axle, wedge, and screw).
The mechanical powers
Power
A measure of the effectiveness that a force producing a physical effect has over time. If linear, the quotient of: (force multiplied by the displacement of or in an object) ÷ time. If rotational, the quotient of: (force multiplied by the angle of displacement) ÷ time.
Power
(mathematics)
Power
A product of equal factors (and generalizations of this notion): , read as " to the power of " or the like, is called a power and denotes the product , where appears times in the product; is called the base and the exponent.
Power
(set theory) Cardinality.
Power
(statistics) The probability that a statistical test will reject the null hypothesis when the alternative hypothesis is true.
Power
In Christian angelology, an intermediate level of angels, ranked above archangels, but exact position varies by classification scheme.
Power
(transitive) To provide power for (a mechanical or electronic device).
This CD player is powered by batteries.
Power
(transitive) To hit or kick something forcefully.
Power
To enable or provide the impetus for.
Power
Impressive.
Power
Same as Poor, the fish.
Power
Ability to act, regarded as latent or inherent; the faculty of doing or performing something; capacity for action or performance; capability of producing an effect, whether physical or moral: potency; might; as, a man of great power; the power of capillary attraction; money gives power.
Power
Ability, regarded as put forth or exerted; strength, force, or energy in action; as, the power of steam in moving an engine; the power of truth, or of argument, in producing conviction; the power of enthusiasm.
Power
Capacity of undergoing or suffering; fitness to be acted upon; susceptibility; - called also passive power; as, great power of endurance.
Power, then, is active and passive; faculty is active power or capacity; capacity is passive power.
Power
The exercise of a faculty; the employment of strength; the exercise of any kind of control; influence; dominion; sway; command; government.
Power is no blessing in itself but when it is employed to protect the innocent.
Power
The agent exercising an ability to act; an individual invested with authority; an institution, or government, which exercises control; as, the great powers of Europe; hence, often, a superhuman agent; a spirit; a divinity.
And the powers of the heavens shall be shaken.
Power
A military or naval force; an army or navy; a great host.
Never such a power . . . Was levied in the body of a land.
Power
A large quantity; a great number; as, a power o good things.
Power
The rate at which mechanical energy is exerted or mechanical work performed, as by an engine or other machine, or an animal, working continuously; as, an engine of twenty horse power.
Power
A mechanical agent; that from which useful mechanical energy is derived; as, water power; steam power; hand power, etc.
Power
The product arising from the multiplication of a number into itself; as, a square is the second power, and a cube is third power, of a number.
Power
A machine acted upon by an animal, and serving as a motor to drive other machinery; as, a dog power.
Power
Mental or moral ability to act; one of the faculties which are possessed by the mind or soul; as, the power of thinking, reasoning, judging, willing, fearing, hoping, etc.
The guiltiness of my mind, the sudden surprise of my powers, drove the grossness . . . into a received belief.
Power
The degree to which a lens, mirror, or any optical instrument, magnifies; in the telescope, and usually in the microscope, the number of times it multiplies, or augments, the apparent diameter of an object; sometimes, in microscopes, the number of times it multiplies the apparent surface.
Power
An authority enabling a person to dispose of an interest vested either in himself or in another person; ownership by appointment.
Power
Hence, vested authority to act in a given case; as, the business was referred to a committee with power.
Power
Possession of controlling influence;
The deterrent power of nuclear weapons
The power of his love saved her
His powerfulness was concealed by a gentle facade
Power
(physics) the rate of doing work; measured in watts (= joules/second)
Power
Possession of the qualities (especially mental qualities) required to do something or get something done;
Danger heightened his powers of discrimination
Power
A state powerful enough to influence events throughout the world
Power
(of a government or government official) holding an office means being in power;
Being in office already gives a candidate a great advantage
During his first year in office
During his first year in power
The power of the president
Power
One possessing or exercising power or influence or authority;
The mysterious presence of an evil power
May the force be with you
The forces of evil
Power
Physical strength
Power
A mathematical notation indicating the number of times a quantity is multiplied by itself
Power
A very wealthy or powerful businessman;
An oil baron
Power
Supply the force or power for the functioning of;
The gasoline powers the engines
Power
Ability to act or produce an effect.
The storm's Power was evident in its destruction.
Power
Rate of doing work or transferring energy.
The engine's Power determines the car's speed.
FAQs
Is Power always about control?
No, Power can denote ability, capacity, or influence, not just control.
Can Leverage be temporary?
Yes, Leverage can be momentary and situation-specific.
Can a person have Leverage without any inherent Power?
Yes, Leverage can stem from situational advantages, not just inherent Power.
Does Power always lead to influence?
Not always, but Power can often translate to influence in many contexts.
Does Power always imply authority?
No, Power can represent ability or influence, even without official authority.
Is Power always positive?
No, Power can be used negatively or positively, depending on its application.
Can Leverage be seen as a form of Power?
Yes, Leverage can provide a strategic form of Power in certain situations.
How is Leverage used in finance?
In finance, Leverage refers to using borrowed funds to amplify potential returns.
Can a company have Leverage over its competitors?
Yes, through unique resources or advantages, a company can have Leverage over competitors.
Is physical strength a form of Power?
Yes, physical strength is a form of Power denoting the ability to act or produce an effect.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
