Definition, Meaning & Synonyms

pro-rata

adverb

/proʊˈrætə/

Definition

A Latin term meaning ‘in proportion’. It is often used to describe the allocation of costs or benefits proportionally based on each party’s share.

Examples

If the company downsizes, each employee’s severance pay will be calculated on a pro-rata basis.
The costs for the group trip will be shared pro-rata depending on how many days each person attends.

Meaning

When something is distributed according to each individual’s share or proportion, it is done pro-rata. This concept is frequently used in finance, insurance, and various contractual agreements.