Pro Rata Share Calculator
Calculate proportional distribution for dividends, rent, or shared expenses.
The total bill, dividend pool, or cost.
Your shares, days occupied, or income.
Total outstanding shares, days in month, or total household income.
Your Ownership/Ratio:
0%
Your Pro Rata Share:
Understanding the Pro Rata Formula
The term "pro rata" is Latin for "in proportion." It is a method of assigning an amount to a fraction according to its share of the whole. Whether you are calculating dividend payments based on shares owned, splitting a utility bill based on income, or determining rent for a partial month, the underlying mathematics remain the same.
The Calculation Formula
To calculate a pro rata share, you need three figures: the total amount to be distributed, the individual's stake (basis), and the total stake (basis). The formula is:
Pro Rata Share = (Your Basis / Total Basis) × Total Amount
Common Real-World Examples
Here is how this calculator applies to different scenarios:
1. Business Dividends
If a company declares a total dividend of $10,000 to be split among shareholders, and there are 1,000 total outstanding shares:
- Total Amount: $10,000
- Your Basis: You own 50 shares.
- Total Basis: 1,000 shares.
- Calculation: (50 / 1000) × $10,000 = $500.
2. Prorating Rent (Partial Month)
If you move into an apartment on the 20th of September (which has 30 days) and the full monthly rent is $1,500:
- Total Amount: $1,500 (Monthly Rent).
- Your Basis: 11 days (you occupy the unit from the 20th to the 30th inclusive).
- Total Basis: 30 days (Total days in September).
- Calculation: (11 / 30) × $1,500 = $550.
3. Splitting Bills by Income
Roommates often split shared costs like utilities based on income rather than splitting 50/50. If the electric bill is $200:
- Person A earns: $40,000.
- Person B earns: $60,000.
- Total Basis: $100,000 (Combined Income).
- Person A's Share: ($40,000 / $100,000) × $200 = $80.