What does prorated mean

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Personal Finance. Your Practice. Popular Courses. Financial Analysis How to Value a Company. Table of Contents Expand. What Is Pro Rata? Understanding Pro Rata. Pro Rata and Dividends. Pro Rata for Insurance Premiums. Pro Rata for Interest Rates. Frequently Asked Questions. Key Takeaways If something is given out pro rata, it typically means everyone gets their fair share. Pro rata means proportionally, such as fees that rise pro rata with employee salaries.

The practice of prorating can apply in many areas, from billing for services to paying out dividends or allocating business partnership income. How Does Pro Rata Work? What Is a Pro Rata Discount?

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November 08, To top. English Business Examples. Sign up for free and get access to exclusive content:. Free word lists and quizzes from Cambridge. Tools to create your own word lists and quizzes. Word lists shared by our community of dictionary fans. Sign up now or Log in. Definitions Clear explanations of natural written and spoken English. Click on the arrows to change the translation direction.

Follow us. Choose a dictionary. Clear explanations of natural written and spoken English. Usage explanations of natural written and spoken English. Grammar Thesaurus. Word Lists. Prorates are often calculated by dividing the total amount due by the minimum billing unit, which in case of monthly bills is normally days. After that, the result will be multiplied by the number of days actually used and the result will be the amount to be billed.

On the other hand, this is also the case for services that were fully paid and now require a reimbursement. For example, if the service is an annual subscription paid in anticipation and the customer wishes to cancel such subscription the company has to calculate how many months are left, divide the annual subscription in a monthly figure and multiply this amount by the number of months remaining.

Logos Magazine is a periodic publication for sociologists that issues articles and research studies about the subject.