Jun 10, 2025 · An amount is assigned to one person according to their share of the whole if something is distributed to several people on a pro rata basis.

Nov 29, 2025 · Define the pro rata payment principle and master the proportional allocation formula used across corporate finance, debt settlements, and insurance.

What is Pro Rata? Pro rata is a Latin term – meaning “in proportion” – that is used to assign or allocate value in proportion to something that can accurately and definitively be measured or calculated.

The pro rata basis refers to the idea that part-time employees' vacation days will match their weekly work schedule. Other uses of pro rata include developing budgets that involve various departments …

Nov 6, 2025 · When something is calculated on a pro rata basis, you take the total amount and divide it according to each person’s or period’s share. Example: If a full-time employee earns $60,000 per …

Apr 9, 2025 · Pro rata is a term used in finance to describe the practice of proportionally allocating a payment or charge. The term stems from Latin and literally translates to "according to the rate." You...

Nov 1, 2025 · In the realm of insurance, if you decide to cancel your policy mid-term, the refund you receive is often calculated on a pro rata basis, ensuring you get back the premium for the unused …

Dec 3, 2021 · Understand the Pro Rata Meaning and learn how to easily calculate it with real-life examples. Simplified guide to pro rata basis for dividends, investments, and more.

Jun 6, 2025 · Learn what pro rata is, discover when to use it and how to calculate it, then view examples regarding dividend payments and part-time salaries.

: proportionately according to an exactly calculable factor (such as share or liability) Did you know? The Latin phrase prō ratā, meaning "in proportion," is a shortening of prō ratā parte/portiōne, meaning …