What does prorate mean?
Prorate is a verb that means to divide or distribute something in proportion to its value, amount, or extent. This can be used in various contexts, including business, finance, and law. The word is often used to describe the division of costs or benefits in a fair or equitable manner. For example, a company may prorate the rent for the remaining months of a lease, or a tax authority may prorate a refund based on a taxpayer's income. The word has a long history, dating back to the 15th century, and is derived from the Latin words 'pro' and 'ratio'. In modern usage, prorate is often used in formal or technical contexts, but it can also be used in everyday language to describe a fair or equitable division of something. Overall, prorate is a useful word for describing the division of costs or benefits in a proportionate manner.
verbTo divide or distribute something in proportion to its value, amount, or extent, often in a way that is fair or equitable.
- To divide or distribute something in proportion to its value, amount, or extent.
"The company prorated the rent for the remaining months of the lease."
"The company prorated the rent for the remaining months of the lease."
"The tax authority prorated the refund based on the taxpayer's income."
The plural form of prorate is used to describe the division of costs or benefits in a proportionate manner, often in a formal or technical context.
"The company prorates the rent for the remaining months of the lease."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of prorate
The word prorate has its roots in the Latin words 'pro' and 'ratio', which together mean 'in proportion to'. The word has been used in English since the 15th century, initially in the context of accounting and finance. Over time, the word has evolved to be used in a broader range of contexts, including law and business. Today, prorate is a widely recognized and useful word for describing the division of costs or benefits in a fair or equitable manner.
How prorate is actually used
In business and finance, prorate is often used to describe the division of costs or benefits in proportion to the value or extent of something. This can be used in various contexts, including accounting, taxation, and contract law.