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What is Prorated?

Prorated is the proportional division of distribution of something, and tends to be based on another variable. The proportional distribution can be based on for example account size; a portfolio’s return can be distributed on a prorated basis, according to account size. Another great example is rent, where the payments are prorated based on time, you typically pay rent on a monthly basis.

Additional Resources

CFI is a global provider of financial modeling courses and of the FMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or are looking for a career change, the CFI website has a multitude of free resources to help you jumpstart your Career in Finance. If you seek to improve your technical skills check out some of our most popular courses. Below are some additional resources for you to further explore:

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