Farebox Recovery Ratio has a long-term focus. It approximates the percentage of operating and long-term expenses paid for by passenger fare revenue and fare reimbursements. Long-term expenses include costs not funded in the current year such as depreciation for equipment and facilities funded through the capital program and interest expense on bonds. It also includes each agency’s estimated share of certain MTA expenses such as the Inspector General and MTA Headquarters.

Farebox Operating Ratio focuses on the agency’s operating performance. It approximates the percentage of agency operating expenses paid for by passenger fare revenue and fare reimbursements.