Short Rate Calculator





Formula

To calculate the Short Rate (SHO):

\[ SHO = \frac{SF}{IV} \times 100 \]

Where:

What is a Short Rate?

The Short Rate (SHO) is a percentage that represents the proportion of the total short fee relative to the total insurance value. It is used to understand the cost associated with short-term insurance policies or adjustments.

Example Calculation

Let's assume the following values:

Step 1: Divide the short fee by the insurance value:

\[ \frac{SF}{IV} = \frac{150}{2000} = 0.075 \]

Step 2: Multiply the result by 100 to get the percentage:

\[ SHO = 0.075 \times 100 = 7.5\% \]

The Short Rate is 7.5%.