Enter the total equity ($) and the preferred rate (%) into the Calculator. The calculator will evaluate the Preferred Return.

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## Preferred Return Formula

PR = E * PFR/100

Variables:

- PR is the Preferred Return ($)
- E is the total equity ($)
- PFR is the preferred rate (%)

To calculate the Preferred Return, multiply the total equity by the preferred rate.

## How to Calculate Preferred Return?

The following steps outline how to calculate the Preferred Return.

- First, determine the total equity ($).
- Next, determine the preferred rate (%).
- Next, gather the formula from above = PR = E * PFR/100.
- Finally, calculate the Preferred Return.
- 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.

total equity ($) = 100,000

preferred rate (%) = 5