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

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## 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:

- First, determine the final rate.
- The final rate is given as: 500.

- Next, determine the percentage change (%).
- The percentage change (%) is provided as: 30.

- 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

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

IR = FR / (1+C/100)** = ?**