Enter the final rate and the percentage change (%) into the Initial Rate Calculator. The calculator will evaluate the Initial Rate.

## Initial Rate Formula

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

IR = FR / (1+C/100)
• Where IR is the Initial Rate
• FR is the final rate
• C is the percentage change (%)

To calculate the initial rate, divide the final rate by 1 plus the change ratio.

## How to Calculate Initial Rate?

The following example problems outline how to calculate Initial Rate.

Example Problem #1:

1. First, determine the final rate.
• The final rate is given as: 500.
2. Next, determine the percentage change (%).
• The percentage change (%) is provided as: 30.
3. Finally, calculate the Initial Rate using the equation above:

IR = FR / (1+C/100)

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

IR = 500 / (1+30/100) = 384.61

Example Problem #2:

For this problem, the variables required are provided below:

final rate = 600

percentage change (%) = 50