Power factor is defined as the cosine of the angle between the voltage and current in a circuit. In a purely resistive circuit the voltage and current are in phase, angle equals 0 degrees, so p.f. = cosine 0 = 1 In a purely capacitive circuit the current leads the voltage by 90 degrees, so p.f.= cosine 90 = 0. And in a purely inductive circuit, the current lags the voltage by 90 degrees, so p.f. = cosine -90 = 0. Most circuits have a combination of inductance and capacitance, and so the angle is usually between 0 and -90. E.g. if current lags voltage by 20 degrees, then p.f.= cosine -20 = .94. The closer the p.f. is to 1 the better because more of the power is able to do real work (watts), as opposed to "reactive" work (vars). Any good electrical engineering AC circuits book should be able to expand on this.