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 = ?
