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

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.


  1. First, determine the total equity ($). 
  2. Next, determine the preferred rate (%). 
  3. Next, gather the formula from above = PR = E * PFR/100.
  4. Finally, calculate the Preferred Return.
  5. 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