how to calculate pro rata
pro rata is calculated based on three factors pro rata share number of true items maximum quantity possible pro rata distribution pro rata share quantity of related itemimagine an employee is set to receive a 10 000 bonus this year they ll receive a pro rata share of the bonus if they leave at any point the employee leaves on march 20th the agreement awards the bonus based on the number of days worked inclusive of the last day divide the number of true items by the maximum quantity possible to calculate the pro rata share the number of true items is the number of days worked there are 79 days inclusive between january 1 and march 20 assuming it s not a leap year the maximum number of days possible is 365 pro rata share 79 365 21 64 multiply the pro rata share by the related item to calculate the pro rata portion the item we want to pro rate is the annual bonus in this case pro rata distribution 21 64 10 000 2 164the employee will therefore receive a pro rata distribution of 2 164 by leaving on march 20 based on the prorated number of days worked of the year pro rata can be communicated as a percent such as the shareholder owns 10 of the company s stock or as a quantity such as the shareholder owns 100 000 of the company s 1 million shares 