The isiMotor2 on which the game is based is a direct successor to the engine used in previous titles developed by ISI, most notably F1 Challenge '99–'02, released through EA Sports.
RFactor was developed by Image Space Incorporated (ISI), which has been developing simulators since the early 1990s for both commercial and military purposes. Released in November 2005, rFactor did not have much competition in this market, but it featured many technical advances in tire modeling, complex aerodynamics and a 15 degrees of freedom physics engine. rFactor aimed to be the most accurate race simulator of its time. RFactor is a computer racing simulator designed with the ability to run any type of four-wheeled vehicle from street cars to open wheel cars of any era.