Prorate Definition & Meaning

For example, let’s say you are moving in on 15 March and your monthly rent is $700, calculate your pro-rata rent for the month. Pro rata literally means the division of something to make up a whole. It doesn’t mean that all parts are equal, but that each piece is given value in proportion to something else.

• Essentially, if you use something for less time than you’re scheduled to use it for, it’s fair to expect that you’ll only be charged for the time you used.
• The states argued that the special funds should have been prorated to the three levels of government, rather than assigned exclusively to the centre.
• Pro rata is a Latin term used to describe a proportionate allocation.
• Missing data within a day’s diary were accounted for by prorating the daily scores.

Imagine that a group of customers use Subscription Plan A for the first 15 days of the month, before switching to Subscription Plan B for the remaining 15 days. Prorated billing ensures that the customer pays one price for the first half of the month and a different price for the other half of the month . To calculate the pro rata distribution, multiply the pro rata share by the related item.

Words Starting With P and Ending

Pro rata means proportionally, such as dividends awarded to investors based on their proportion of investment. Irish secondary school teachers are entitled to pro rata pay for part-time work. An example of prorate is a landlord charging a tenant $500 for staying in a house for fifteen days, where the rent is $1,000 per month.

But revenue of local TV contracts, even if https://intuit-payroll.org/, and the windfall from the national TV deal, especially the postseason piece, remain as revenue streams. The village will prorate the annual liquor and gaming license fees to help restaurants and bars that were closed under state mandates. Some couples elect to have the same stipend, while others prorate based on incomes or needs. We therefore prorated symptom counts for those missing one or two answers, and treated as missing counts for par ticipants with more than two answers missing.

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The pro rata system or the ability to prorate is especially useful whenever it’s necessary to allocate or reallocate single units of measurement across even smaller units or pieces. The buying and selling of goods or services sensitive to time – and the companies responsible for the buying and selling – are the primary users of the pro rata system of allocating value. To make an arrangement on a basis of proportional distribution.

When a company pays dividends to its shareholders, each investor is paid according to its holdings. If a company has 100 shares outstanding, for example, and issues a dividend of $2 per share, the total amount of dividends paid will be $200.

Prorated definition

In this example, the item we want to pro rate is the annual bonus. Recently, the department received a subscription withdrawal request from a lady called Mindy. She paid in advance for a 1-year subscription and she is on the 8th month of it. The yearly subscription costs $75 and according the department’s calculation, the monthly cost of the service is $6.25. Since Mindy has 4 months left on her service the total amount to be refunded would be prorated to a total of $25.

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• When a company pays dividends to its shareholders, each investor is paid according to its holdings.
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• If the customer buys four products, each item would receive a $5 discount.
• Therefore, in this example, by leaving on March 20th, the employee will receive a pro rata distribution of $2,164 based on the prorated number of days worked of the year.

Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Pro rata has a Latin etymology, from pro, according to, for, or by, and rata, feminine ablative of calculated .

When liability for a toxic tort or a defective product concerns many manufacturers, the liability under tort Prorate Definition And Meaning is allocated pro rata. Join Macmillan Dictionary on Twitter and Facebook for daily word facts, quizzes and language news. Definition and synonyms of prorate from the online English dictionary from Macmillan Education. Pro rata and prorated are used interchangeably to define the same thing.