Pro Rata

Pro Rata means "in proportion" or "according to share." It’s used to fairly divide something, like costs, benefits, or responsibilities, based on each person's or group's relative size or contribution. For example, if a bill of $100 needs to be split between two people, where one used 70% of the service and the other 30%, each pays $70 and $30 respectively. Pro Rata ensures division aligns with each party’s fair share, often used in finance, insurance, and contracts to allocate costs or benefits proportionally.