Fuel Adjustment Factor Calculator

How to Use the Calculator

1. Enter the current fuel price in the "Fuel Price" field.
2. Enter the base fuel price in the "Base Price" field.
3. Enter the adjustment rate in the "Adjustment Rate" field as a percentage (e.g., 5 for 5%).
4. Click the "Calculate" button to compute the Fuel Adjustment Factor.
5. The result will be displayed in the "Fuel Adjustment Factor (FAF)" field.

Understanding the Formula

The Fuel Adjustment Factor (FAF) is calculated using the formula:

FAF = (Fuel Price - Base Price) * (1 + Adjustment Rate / 100)

This formula adjusts the fuel price based on the difference between the current fuel price and the base price, then applies the adjustment rate to determine the final factor.

Example

If the current fuel price is $3.50, the base price is $3.00, and the adjustment rate is 5%, the calculation would be:

FAF = ($3.50 - $3.00) * (1 + 5 / 100) = $0.50 * 1.05 = $0.525