pro rata

adverb

pro ra·ta (ˌ)prō-ˈrā-tə

-ˈrä-

-ˈra-

: proportionately according to an exactly calculable factor (such as share or liability)

pro rata adjective

Did you know?

The Latin phrase prō ratā, meaning "in proportion," is a shortening of prō ratā parte/portiōne, meaning "according to the fixed proportion." English users borrowed the shorter phrase in the 16th century, dropping the diacritics along the way, and began applying the term in contexts formal enough that Latin doesn't seem too out of place: in finance and law. There pro rata refers to distributing or allocating a quantity proportionately—for example, dividing up an annual interest rate pro rata into monthly rates; distributing pro rata a profit amongst shareholders; paying part-time employees pro rata (according to full-time pay); or allocating liability for a defective product pro rata. In the early 19th century, pro rata demonstrated its usefulness as an adjective, as in "a pro rata share" or "pro rata distribution." The verb prorate (based on pro rata) followed soon thereafter. Incidentally, the familiar noun and verb rate (as in "tax rates" and "rating on a scale of 1 to 5") also trace back to Latin prō ratā parte, but they entered the language back in the 15th century by way of Anglo-French.

Examples of pro rata in a Sentence

Recent Examples on the Web Streaming has long been criticized for its pro rata model, where all revenues flow into one pot and are distributed according to the share of total streams. —

WIRED, 19 Sep. 2023 The major streaming platforms run on a pro rata model, meaning that royalties are based on Apple Music’s total streaming earnings that are then divvied up. —

Samantha Hissong, Rolling Stone, 16 Apr. 2021 The deal included a pro rata clause that said if the conference added another Power Five school (up to 16 members) that program could come in as a full-share member immediately. —

Kevin Reynolds, The Salt Lake Tribune, 15 Aug. 2023 But the Big 12 TV rights allow a pro rata clause stipulating that the financial value of the deal increases accordingly when the Big 12 adds a Power 5 school. —

Jeremy Cluff, The Arizona Republic, 31 July 2023 The fund will be divided among the qualified claimants on a pro rata basis, depending on how much they were overcharged by the DWP. —

Jon Healey, Los Angeles Times, 9 Aug. 2023 And each holder of shares of Lionsgate’s existing Class B non-voting common stock will receive shares of new Class B non-voting common stock of New Starz and shares of New Lionsgate’s non-voting common stock on a pro rata basis. —

Etan Vlessing, The Hollywood Reporter, 9 Aug. 2023 The depositors are paid out of the FDIC insurance fund—which is funded by all the banks pro rata, depending upon their deposit size—meaning JPMorgan and Citibank contribute a lot more into the fund than your local bank. —

Carrie McCabe, Forbes, 17 Mar. 2023 Savvy VCs are skilled negotiators who routinely secure investor-friendly terms—preferred shares, pro rata rates, MFN clauses, board seats and so on. —

Yule Georgieva, Rolling Stone, 28 Feb. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'pro rata.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.