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Is It “Prorated” or “Pro Rata”? Don’t Prolong Your Confusion

Pro rata and prorated. Say them in quick succession and they sound nearly identical. The terms are similar in meaning, and one even stems from the other. (Prorated is from the Latin pro rata, which means “in proportion.”) But these two terms differ in parts of speech and context. We’ll walk you through when it’s appropriate to use one versus the other.   

⚡ Quick summary

Prorated and pro rata are both recognized terms, but they mean slightly different things. Prorated is an adjective or verb that describes an amount that’s adjusted in proportion to something, such as time or usage. Pro rata, which can be an adverb or adjective, refers to how something is allocated fairly based on a particular factor. 

Is it prorated or pro rata?

That depends what you’re referring to. If your rent is $3,000 a month, but you move in on the 15th, the landlord may only charge you a prorated fee of $1,500. That means the cost is adjusted based on the usage. 

If four friends share the cost of a vacation rental equally, they each pay their share, pro rata. In other words, they divide it up fairly. 

Prorated functions as an adjective or past-tense verb (with the present tense being prorate), while pro rata is used as an adverb or adjective. 

Here are a couple of examples:

  • I started my new job halfway through the pay period, so my first paycheck was prorated.
  • Because I own 10% of the company’s stock, I’m entitled to 10% of its dividends, pro rata.

Prorated and pro rata are sometimes used interchangeably in everyday language when describing something proportional. But technically, pro rata describes the method of distribution according to a particular proportion. And prorated describes the adjustment made to an amount based on certain factors like time or usage.