Pro Rata Share Calculator
Calculate proportional distribution for expenses, shares, or rent.
(Your square footage, shares owned, or days used)
(Total building size, total shares, or total days)
(The total cost, bill, or dividend pool being divided)
Calculation Results:
Pro Rata Percentage:
0%
Allocated Share Amount:
$0.00
Understanding Pro Rata Calculations
The term "Pro Rata" is a Latin phrase meaning "in proportion." In finance and legal settings, it refers to a process where something is assigned to multiple people in equal portions to their share of the whole. Whether you are a commercial tenant paying "triple net" (NNN) expenses or a shareholder receiving dividends, knowing your pro rata share is essential for financial transparency.
The Pro Rata Formula
The calculation follows a simple two-step mathematical process:
- Determine the Percentage: Divide the Individual Unit by the Total Units.
- Apply to Total Amount: Multiply that percentage by the total dollar amount to be distributed.
(Individual Share / Total Shares) x Total Expense = Pro Rata Share
Common Use Cases
- Commercial Real Estate: Tenants often pay common area maintenance (CAM) fees based on the square footage they occupy relative to the total building size.
- Corporate Dividends: If a company declares a dividend, you receive a portion based on how many shares you own relative to the total shares outstanding.
- Partial Month Rent: If you move in on the 15th of a 30-day month, you pay a pro rata share (15/30) of the monthly rent.
- Partnership Distributions: Profits are shared based on the percentage of capital contributed by each partner.
Practical Example
Imagine you rent 2,500 square feet in a shopping center that totals 50,000 square feet. The total property tax bill for the year is $20,000.
- Step 1: 2,500 / 50,000 = 0.05 (or 5%)
- Step 2: 5% of $20,000 = $1,000
Your pro rata share of the property tax is $1,000.