Prorating can be useful in multiple situations, including allocating shared expenses, calculating partial amounts, and more.
Some common situations requiring prorating include:
Allocating shared expenses: Prorating can be used to calculate how much each person should pay for shared expenses, such as utilities for an apartment complex.
Calculating partial amounts: Prorating can be used to calculate partial amounts, such as prorating rent for a new tenant who moves in on the 15th of the month rather than at the beginning of the month.
Determining pro-rata share: Prorating can be used to determine each person’s pro-rata share of an expense, such as prorating the cost of a hotel room among the people who stay in it.
Adjusting for partial periods: Prorating can be used to adjust amounts for partial periods.