PHRF (Performance Handicapped Racing Fleet) is a system designed to allow sailing yachts of different design and equipment to compete with one another on the basis of crew skill rather than equipment superiority. The handicapping system uses the perceived speed potential of a yacht as the basis for the handicap.

The handicap number assigned to a class of yachts is based on the yacht's speed relative to a theoretical yacht with a rating of 0. A yacht's rating is the number of seconds per mile traveled that the theoretical yacht should be in front. If Boat A has a PHRF rating of 10 and Boat B has a rating of 20 and they compete on a 1 mile course, Boat A must finish at least 10 seconds in front of Boat B to win the race. Results are adjusted for handicap by the race committee after all competitors have finished.

If a class of yachts is strongly outperforming their assigned rating, the PHRF committee of a region can adjust the handicap as they see appropriate. This prevents classes of yacht's within a region from obtaining mistakenly favorable PHRF ratings and compromising the competitive nature of a fleet.,