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

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:

  1. First, determine the total payback amount ($).
    • The total payback amount ($) is given as: 30,000.
  2. Next, determine the advance amount ($).
    • The advance amount ($) is provided as: 100,000.
  3. 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 = ?