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.

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

pro-rate cancellation factor = 800

short rate = 900