diff --git a/README.md b/README.md
index 0d30e89..bcd3504 100644
--- a/README.md
+++ b/README.md
@@ -77,6 +77,33 @@ Tell Level which BentoBox game modes it should connect to.
 - **Sum Team Deaths** – Choose whether to track team deaths or just the leader's.
 - **Reset on Island Reset / Team Join** – Wipe the death count when teams change or islands are reset.
 
+### 📐 Level Calculation Formula
+
+The `level-calc` setting in `config.yml` controls how island levels are computed. It supports the following variables:
+
+| Variable | Description |
+|---|---|
+| `blocks` | The total block value points for the island, minus any death penalty |
+| `level_cost` | The value of one island level (see `levelcost` setting) |
+| `island_members` | The number of members currently on the island team |
+
+The formula can use `+`, `-`, `*`, `/`, `^`, `sqrt`, `sin`, `cos`, `tan`, and `log` (natural log). The result is rounded to the nearest whole number.
+
+**Default formula:** `blocks / level_cost`
+
+**Handicap (fairness) example:** To divide the island level equally per member so solo islands remain competitive with larger teams, use:
+
+```yaml
+level-calc: "blocks / level_cost / island_members"
+```
+
+With this formula and the default `level_cost` of `100`, a block worth 100 points would contribute the following to the **island level**:
+- **0.25 levels** per block on an island with 4 members (100 / 100 / 4 = 0.25)
+- **0.33 levels** per block on an island with 3 members (100 / 100 / 3 ≈ 0.33)
+- **1 level** per block on a solo island (100 / 100 / 1 = 1)
+
+This makes competition fairer between solo players and large teams.
+
 ### 🚫 Block Limits
 Cap the number of specific blocks that count toward level (e.g., only 200 DIAMOND_BLOCKs count).
 
diff --git a/src/main/java/world/bentobox/level/calculators/IslandLevelCalculator.java b/src/main/java/world/bentobox/level/calculators/IslandLevelCalculator.java
index a7425eb..cbb35c1 100644
--- a/src/main/java/world/bentobox/level/calculators/IslandLevelCalculator.java
+++ b/src/main/java/world/bentobox/level/calculators/IslandLevelCalculator.java
@@ -136,8 +136,11 @@ private long calculateLevel(final long rawPoints) {
         long modifiedPoints = rawPoints
                 - (addon.getSettings().isZeroNewIslandLevels() ? results.initialCount.get() : 0);
         // Paste in the values to the formula
-        String withValues = calcString.replace("blocks", String.valueOf(modifiedPoints)).replace("level_cost",
-                String.valueOf(this.addon.getSettings().getLevelCost()));
+        // Use Math.max(1, ...) to prevent division by zero if island_members is used in the formula
+        int memberCount = Math.max(1, this.island.getMemberSet().size());
+        String withValues = calcString.replace("island_members", String.valueOf(memberCount))
+                .replace("blocks", String.valueOf(modifiedPoints))
+                .replace("level_cost", String.valueOf(this.addon.getSettings().getLevelCost()));
         // Try and evaluate it
         try {
             return (long) EquationEvaluator.eval(withValues);
@@ -252,6 +255,7 @@ private List<String> getReport() {
         reportLines.add("Total block value count = " + String.format("%,d", results.rawBlockCount.get()));
         reportLines.add("Formula to calculate island level: " + addon.getSettings().getLevelCalc());
         reportLines.add("Level cost = " + addon.getSettings().getLevelCost());
+        reportLines.add("Island members = " + island.getMemberSet().size());
         reportLines.add("Deaths handicap = " + results.deathHandicap.get());
         /*
         if (addon.getSettings().isZeroNewIslandLevels()) {
diff --git a/src/main/java/world/bentobox/level/config/ConfigSettings.java b/src/main/java/world/bentobox/level/config/ConfigSettings.java
index f5b16b3..f7879a3 100644
--- a/src/main/java/world/bentobox/level/config/ConfigSettings.java
+++ b/src/main/java/world/bentobox/level/config/ConfigSettings.java
@@ -98,8 +98,10 @@ public class ConfigSettings implements ConfigObject {
     @ConfigComment("Island level calculation formula")
     @ConfigComment("blocks - the sum total of all block values, less any death penalty")
     @ConfigComment("level_cost - in a linear equation, the value of one level")
+    @ConfigComment("island_members - the number of members on the island team (useful for handicap/fairness systems)")
     @ConfigComment("This formula can include +,=,*,/,sqrt,^,sin,cos,tan,log (natural log). Result will always be rounded to a long integer")
     @ConfigComment("for example, an alternative non-linear option could be: 3 * sqrt(blocks / level_cost)")
+    @ConfigComment("To implement a handicap by team size: blocks / level_cost / island_members")
     @ConfigEntry(path = "level-calc")
     private String levelCalc = "blocks / level_cost";