# How to Calculate Pro Rata Amounts

Daily, or even more often, you may have to divide costs or income between multiple people or categories. However, simply dividing the amount into equal parts doesn't always get the job done. Instead, calculating pro rata amounts proportionally allocates the amounts between the different categories. That way, the allocations are more accurate and tell you what you need to know.

How to Calculate Pro Rata Amounts
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## Pro Rata Formula

To calculate a pro rata share, you must know the amount you want to calculate the pro rata amount of and the criteria you are using to calculate it. The criteria could any number of things, including ownership shares, days or hours worked during a pay period, or miles driven for a specific purpose. Divide the portion you want to calculate by the total, and then multiply the resulting decimal by the amount you want to calculate the pro rata share of.

For example, if you are in business with three of your friends and one of them only contributes part-time, that friend only has 10 shares of the company. You and your two other friends each have 30 shares. When the company makes \$20,000, you need to divide your profit among the owners based on your ownership interests. To calculate your share, divide your 30 shares by the 100 total shares to get 0.3. Then, multiply 0.3 by \$20,000 to find you get to keep \$6,000 of the profits.