The word prorated is often used when describing the first month’s rent on an apartment. 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. He thought all of it was going to his yearly total in taxes. 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.
- The home’s water filter cartridge had a 36-month warranty period.
- Proration can be used whenever your customers change their subscription plan.
- He is also an online editor and writer based out of Los Angeles, CA.
- He thought all of it was going to his yearly total in taxes.
- They were frustrated with the bureaucracy of the company.
Of course, if a customer upgrades to a more expensive plan, their monthly bill may need to be increased to reflect the standard of service that they actually received. Prorated billing can ensure that the customer pays the difference. Let’s say that Subscription Plan A costs $300 per month, whereas Subscription Plan B costs $200 per month, and that payment is taken at the beginning of the month. In this example of prorated billing, the prorated amount is $150, the prorated credit is $150, and the charge on the new plan for that month is $100.
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Kevin Miller is a growth marketer with an extensive background in Search Engine Optimization, paid acquisition and email marketing. He is also an online editor and writer based out of Los Angeles, CA. 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. Add prorated to one of your lists below, or create a new one. Add prorate to one of your lists below, or create a new one. GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices.
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.
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They were frustrated with the bureaucracy of the company. 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. The word prorated can be used in many different sentences. According to Etymonline, the word prorate – also sometimes spelled pro-rate, has been used since the year 1860 in American English. This verb is derived from the LAtin pro rata or Latin pro rata parte.
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. This list of synonyms for the word prorated is provided by Thesaurus.
Origin of prorate
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What is proration?
That’s essentially what we mean by a prorated charge, or prorated amount. Proration is an especially important concept for subscription-based businesses to understand, as many customers will want to change or cancel their subscription plan at some point during a billing cycle. For a better sense of how prorated billing works in practice, let’s look at an example of how to prorate in the real world. Imagine that a group of customers use Subscription Plan A for the first 15 days of the month, before switching to Subscription Plan B for the remaining 15 days. Overall, the word prorated means Divided, distributed, or assessed proportionately. If a person pays a prorated amount, they do not have to pay the entire month or unit of time since they did not use the services for the whole time.
You never know, it might become one of your new favorite words to use! You can use flash cards or brain games to learn this definition. 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.
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If certain costs fall outside of the normal billing cycle or cycles, this is when the landlord will do calculations to determine the amount that the tenant owes. If employees start a new job halfway through the year, their annual salary would also be prorated. Proration can be used whenever your customers change their subscription plan. For example, if a customer downgrades their plan to a less expensive option, they’re likely to have paid more than their expected usage. As a result, they may need to be given prorated credit, because they’re owed cash for the price difference.
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A landlord will usually prorate the first month of the rental if the tenant does not move-in on the first day of the month. For example, if a tenant moved in on the 15th of February instead of the first, this would mean that they would only have to pay half of the rent for that first month. If the move out date is before the end of the month, the last month’s rent will also be prorated. Prorated rent is a lower amount than the standard monthly rent.