Pro rata is a Latin term that translates to "in proportion." Put simply, it is used to describe a proportionate allocation. It's a process in which an allocated asset is distributed in equal portions.

Pro rata ensures equal treatment based on stake or time in financial transactions like mortgages. When shifting insurance mid-plan, pro rata calculations secure partial refunds based on unused ...

Q. Hi Dan. In your last column you wrote about “… a rather infamous provision dubbed the ‘pro-rata rule.’” One of my IRAs is non-deductible, so I need to know what that is and why it’s infamous. Can ...