EXHIBIT 11.1

                            MCLEODUSA INCORPORATED 

          COMPUTATION OF LOSS PER COMMON AND COMMON EQUIVALENT SHARE 
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

 
 
                                                                 YEAR ENDED DECEMBER 31,
                                                            1995          1996          1997
                                                         ----------    ----------    ---------
                                                                             
Computation of weighted average number of 
     common shares outstanding and common 
     equivalent shares: (A)
Common shares, Class A, outstanding at the 
     beginning of the period                                14,456        16,387       36,173  
Common shares, Class B, outstanding at the                                                     
     beginning of the period (B)                             7,671        15,626       15,626  
Weighted average number of shares issued during                                                
     the period                                              5,855         8,493        3,175  
Weighted average number of shares reissued from the                                            
     treasury during the period                                 22            --           --   
                                                         ----------    ----------    --------- 

Weighted average number of common shares and 
     common equivalent shares                               28,004        40,506       54,974                        
                                                         ==========    ==========    =========  
Net loss                                                 $ (11,329)    $ (22,346)    $(79,910)    
                                                         ==========    ==========    =========  
Loss per common share                                    $   (0.40)    $   (0.55)    $  (1.45)
                                                         ==========    ==========    =========     
 

(A)  All shares have been adjusted to give effect to the 3.75 for 1 stock split 
     effected in the form of a stock dividend effective March 28, 1996.

(B)  The Class B commom stock, $.01 par value per share is convertible on a one-
     for-one basis at any time at the option of the holder into Class A common
     stock. As of June 30, 1997, all shares of Class B common stock had been
     converted into shares of Class A common stock.