The term prorated means divided or distributed proportionally. It's necessary to prorate amounts that are charged or earned for part of a period. For example, you may start a new job or rent a new apartment part-way through the month.

What does it mean to prorate an amount?

To prorate is to divide something in a proportional way, based on time. If your new landlord prorates your first month's rent, she only charges you for the days you've actually lived in your apartment.

How do you calculate a prorated amount?

You multiply this amount by the number of days the tenant will occupy the unit. For instance, say a tenant is moving in on the 25th of September and the full rent is $1,200. Calculating by the number of days in a month would look like this: 1200/30 x 5=200. Therefore, $200 would be the prorated rent.