'Displacement power factor' is the technically-correct term used to describe the cosine of the phase angle (i.e.

the angle by which the load current leads or lags the supply voltage) due to the reactance of a load. Usually, when we talk about the 'power factor' of a load, we mean 'displacement power factor'. However, another type of power factor can exist in a circuit, due to the presence of harmonics in the current waveform, due to non-linear loads such as SCR rectifiers. This type of power factor is temed 'distortion power factor', and may be corrected using filters. So, the terms 'displacement' and 'distortion' are used whenever it is necessary to clarify these different types of power factor.

The displacement factor is the cosine of the phase-angle between the fundamental components of the supply voltage and current.