Pro Rata Calculator
Calculate proportional amounts for salary, rent, or services.
Calculation Result
Understanding Pro Rata Calculations
The term pro rata is a Latin phrase meaning "in proportion." In finance and business, a pro rata calculation is used to assign an amount to a fraction of a whole. This is essential when dealing with partial months of rent, mid-month salary starts, or distributed dividends.
The Pro Rata Formula
Pro Rata Amount = (Total Amount / Total Units in Period) × Units Used
Real-World Pro Rata Calculation Examples
Example 1: Rent Allocation
Imagine you are moving into an apartment on the 10th of a 30-day month. The full monthly rent is $1,500. You need to calculate the rent for the remaining 21 days (including the 10th).
- Total Amount: $1,500
- Total Days: 30
- Days Used: 21
- Calculation: ($1,500 / 30) * 21 = $1,050
Example 2: Partial Salary
An employee starts a new job with a monthly salary of $4,000. They start on the 20th of a 31-day month. They work for 12 days that month.
- Total Amount: $4,000
- Total Days: 31
- Days Worked: 12
- Calculation: ($4,000 / 31) * 12 = $1,548.39
When to Use a Pro Rata Calculator
Pro rata calculations are standard practice in several industries:
- Real Estate: Calculating property taxes, HOA fees, or rent for partial occupancy.
- Employment: Adjusting pay for mid-cycle starts, terminations, or unpaid leave.
- Insurance: Refunding premiums when a policy is cancelled mid-term.
- Investing: Distributing dividends to shareholders based on their percentage of ownership.