Enter the total payback amount ($) and the advance amount ($) into the Factor Rate Calculator. The calculator will evaluate the Factor Rate.

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## Factor Rate Formula

The following two example problems outline the steps and information needed to calculate the Factor Rate.

FR = P / A

- Where FR is the Factor Rate
- P is the total payback amount ($)
- A is the advance amount ($)

To calculate the factor rate, divide the payback amount by the advance amount.

## How to Calculate Factor Rate?

The following example problems outline how to calculate Factor Rate.

Example Problem #1:

- First, determine the total payback amount ($).
- The total payback amount ($) is given as: 30,000.

- Next, determine the advance amount ($).
- The advance amount ($) is provided as: 100,000.

- Finally, calculate the Factor Rate using the equation above:

FR = P / A

The values provided above are inserted into the equation below and computed.

FR = 30,000 / 100,000 = .30

Example Problem #2:** **

For this problem, the variables required are provided below:

total payback amount ($) = 40,000

advance amount ($) = 80,000

Test your knowledge using the equation and check your answer with the calculator..

FR = P / A** = ?**