Enter the monthly average price ($) and the tender base price of fuel ($) into the Calculator. The calculator will evaluate the Fuel Adjustment Factor.

## Fuel Adjustment Factor Formula

FAF = AP - TBP

Variables:

- FAF is the Fuel Adjustment Factor ($)
- AP is the monthly average price ($)
- TBP is the tender base price of fuel ($)

To calculate Fuel Adjustment Factor, subtract the tender base price of the fuel from the monthly average price.

## How to Calculate Fuel Adjustment Factor?

The following steps outline how to calculate the Fuel Adjustment Factor.

- First, determine the monthly average price ($).
- Next, determine the tender base price of fuel ($).
- Next, gather the formula from above = FAF = AP – TBP.
- Finally, calculate the Fuel Adjustment Factor.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

monthly average price ($) = 500

tender base price of fuel ($) = 400