Pro-rated

Pro-rated, as an adjective or verb, signifies the proportional allocation or distribution of something, usually costs or benefits, based on a period of time, use, or contribution. It ensures fairness by assigning a share relative to an individual's or entity's involvement. This is a common practice in financial contexts, such as insurance, subscriptions, and salaries, where payments or benefits are calculated according to actual usage or the portion of time covered. Essentially, pro-rating means to divide something equitably, considering the extent of participation or the duration involved, avoiding unfair advantage or disadvantage.

Pro-rated meaning with examples

• When the software subscription was canceled mid-month, the company issued a Pro-rated refund for the unused portion. This way, only the time used was paid for, and the user was fairly compensated for early termination. The user was happy with the fair and equitable resolution.
• If an employee starts mid-month, their first paycheck will be Pro-rated based on the number of days they worked during that pay period. This ensures the employer pays them accurately for services rendered. There is an assurance to be an accurate and fair system.
• The insurance policy premiums were Pro-rated for the partial year that the vehicle was insured. It would've been unfair for the owner to pay for a full-year coverage for just half a year's use.
• The cost of the venue rental was Pro-rated among the event organizers based on the number of hours each organizer utilized the space. A fair and well-managed agreement meant fair usage of the cost to those using the space.