PRORATE definition in the Cambridge English Dictionary

If you hire a contractor for a month, but they finish the project sooner, you’d only pay for the time they spent working. To be clear, utility companies won’t prorate your bill if you connect to their services but don’t physically occupy the rental unit or commercial real estate space. Instead, they’ll typically start charging when your services are first connected.

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1. This information will break down the exact calculation used to charge you for that month, and by understanding prorated calculations, you can double-check the work to ensure you aren’t being overcharged.
2. This list of synonyms for the word prorated is provided by Thesaurus.
3. Similar to rent, you might start using gas and electricity part of the way into the month when you move into a new apartment.
4. Take your learning and productivity to the next level with our Premium Templates.
5. The year-long lease started in January, though the tenant only had to pay a partial month since she did not move in on the first of the month.

The word prorated is often used when describing the first month’s rent on an apartment. Advertising prorated services can make your business more trustworthy in the eyes of potential customers and give them greater confidence in their chosen services. Prorated is a synonym of the term, “pro rata,” which implies that people receive a share of the total in some way. According to his lease agreement, he had to pay the full month’s rent on the first of the month, even though his move-out dates would suggest that he should pay a prorated amount.

Meaning of prorate in English

Customers may ask about prorated charges if your company offers a subscription service. While there are lots of situations that require prorating https://www.quick-bookkeeping.net/ numbers, there are also many instances where numbers are not prorated. One of the most common is that of payment of stock dividends.

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This list of synonyms for the word prorated is provided by Thesaurus. Despite the simplicity of this approach, it’s unlikely that your customers will consider it fair. Some may even deliberately time their subscriptions to score a “free” service period.

Utility providers can use different methods to charge their customers; some offer users the option to be charged a daily average rate each month or an exact amount based on what the meter reads. Instead of paying a full month’s rent, you probably only want to pay for half of that month that you were actually living in the apartment. The home’s water filter cartridge had a 36-month warranty period. Cartridge stopped working on one of the applicable days, they would get a prorated reimbursement. Since the company started in July, the employee salaries were at the rate of a prorated salary and they would not receive their year-end  bonuses since they had not worked at the company for a year. The number of hours they worked did not even qualify them for a full day off, let alone an extra day.

Usually, car insurance providers charge customers based on a 6-month fee. While you can pay it monthly, the fee is determined on a semi-annual basis. If your car insurance quote was $750 for 6 months, you would expect to pay $125 per month. There are many different words that a person can use in place of the word prorated. These are called synonyms, which are words and phrases that have the same definition as another given word or phrase. Learning synonyms is a great way to avoid repeating yourself while also expanding your English language vocabulary.

There are many examples of times when a prorated number is required. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘prorate.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Next, multiply 1.25 by 7 working months, which gives you 8.75 days of paid vacation days for the year. Be sure to check with your insurance provider to see if they offer prorated refunds as many of them do. Say the company you bought stock in has 500 shares outstanding that they’ve committed to paying $1 per share on. You own a much smaller slice of the pie than the other person, so you’ll get less of a payout.

The renter decided to move out in the middle of the month of June rather than waiting until the last day of the month. He hoped to pay a prorated rent amount for each apartment per his rental agreements. For example, imagine you charge your customers https://www.quick-bookkeeping.net/how-do-federal-income-tax-rates-work/ an annual fee for a subscription to your company’s services. If someone has been a customer for less than a year, you can offer them a prorated fee corresponding to the actual time they’ve used your services when it comes time to bill them.

But what happens when a customer uses your services for less than the standard amount of time? Prorated rent calculations can be used when you move in and when you move out, too. If your landlord usually collects rent on the first of every month, but you’re moving out on the 16th, they’ll charge you a prorated amount for the last month. With utilities, you are often provided the bill calculations in your monthly statement. This information will break down the exact calculation used to charge you for that month, and by understanding prorated calculations, you can double-check the work to ensure you aren’t being overcharged.

I was shocked to know that his current yearly salary had been prorated the entire time due to superfluous charges for his uniform and other deductions at a monthly cost. According to the Merriam-Webster Unabridged Dictionary of the English Language, the word prorate is a transitive verb that means to divide, distribute, or assess proportionately. Prorating is the present progressive tense, but other suffixes can be used to create the indicative past tense, subjunctive past tense, and more.

Next month, your bill will be higher, going up to $300 because you’re paying for the full 30 days. Similar to rent, you might start using gas and electricity part of the way into the month accounting for interest payable: definition journal entries example and more when you move into a new apartment. Depending on how your utility provider bills its customers, they will likely charge you a prorated amount for your partial usage within the month.

You can use this basic formula to prorate any monthly amounts you wish to adjust for your customers or renters. Despite these downsides, most companies will find that the benefits of proration far outweigh any possible disadvantages. In fact, failure to prorate your core services could even cause potential customers to jump ship and seek a competitor able to offer a more affordable, flexible option. Offering purchases journal format calculation and example prorated services can benefit both you and your most loyal customers in several ways. Some contractors deliberately prorate their services to secure business, so this can be a convenient way to ensure quality work while also keeping costs down. As for contractors, if you charge a contractor to work for a set amount of time, you can arrange for a prorated amount based on the time they actually spend working.