Displacement-amplifying compliant mechanisms (DaCMs) reported in literature are mostly used for actuator applications. This paper considers them for sensor applications that rely on displacement measurement, and evaluates them objectively. The main goal is to increase the sensitivity under constraints imposed by several secondary requirements and practical constraints. A spring-mass-lever model that effectively captures the addition of a DaCM to a sensor is used in comparing eight DaCMs. We observe that they significantly differ in performance criteria such as geometric advantage, stiffness, natural frequency, mode amplification, factor of safety against failure, cross-axis stiffness, etc., but none excel in all. Thus, a combined figure of merit is proposed using which the most suitable DaCM could be selected for a sensor application. A case-study of a micro machined capacitive accelerometer and another case-study of a vision-based force sensor are included to illustrate the general evaluation and selection procedure of DaCMs with specific applications. Some other insights gained with the analysis presented here were the optimum size-scale for a DaCM, the effect on its natural frequency, limits on its stiffness, and working range of the sensor.