Enter the pro-rate cancellation factor and the short rate into the Calculator. The calculator will evaluate the Short Rate Penalty.

## Short Rate Penalty Formula

SRP = PRCF * SRF

Variables:

- SRP is the Short Rate Penalty ()
- PRCF is the pro-rate cancellation factor
- SRF is the short rate

To calculate the Short Rate Penalty, multiply the pro-rate cancellation factor by the short rate.

## How to Calculate Short Rate Penalty?

The following steps outline how to calculate the Short Rate Penalty.

- First, determine the pro-rate cancellation factor.
- Next, determine the short rate.
- Next, gather the formula from above = SRP = PRCF * SRF.
- Finally, calculate the Short Rate Penalty.
- 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.

pro-rate cancellation factor = 800

short rate = 900