What does prorated

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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? Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

This compensation may impact how and where listings appear. To calculate the prorated amounts for each party, multiply the cost per day by the days the seller owned the home, then take that figure and subtract it from the yearly total.

The result is the prorated tax the buyer owes. The same method can be used to cover homeowner's insurance and HOA fees. Under state and federal laws, employees usually receive a specified amount of money each pay period, regardless of the number of days worked. Your salary can be prorated if you do not work the entire pay period and the deduction meets the legal requirements.

See more words from the same year. Accessed 13 Nov. Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free! Log in Sign Up. Save Word. Definition of prorated. Other warranties are not prorated.